Stablecoins - Use Cases

Discussion in 'Crypto Assets' started by patrickrooney, Dec 28, 2022.

  1. johnarb

    johnarb

    If you hold a particular stablecoin in a local wallet, you can easily swap it to a different stablecoin using a dex

    Theoretically in a game of musical chair, you will be much farther ahead of everyone else

    Here's one dex, there are many dexes out there

    https://curve.fi/#/ethereum/swap
     
    #11     Dec 28, 2022
  2. RedDuke

    RedDuke

    Happy Holidays!!! John which Dexes are you favourite?
     
    #12     Dec 28, 2022
    johnarb likes this.
  3. johnarb

    johnarb

    Happy Holidays, RedDuke!!!

    It depends on which blockchain I would be trading on

    If it's on Ethereum I use Uniswap with the exception of maybe one or two crypto assets that was only tradeable on Sushiswap

    If it's on Binance Smart Chain, I use Pancakeswap, if on Fantom, I use SpookySwap, if on Avalanche, I use TraderJoe

    The one I sent earlier is Curve Finance which specializes in trading (swapping) between different stablecoins
     
    #13     Dec 28, 2022
    RedDuke likes this.
  4. destriero

    destriero

    near zero volatility.
     
    #14     Dec 28, 2022
  5. Red my friend, I know You are on a crusade against tether and I am not one to defend tether. I wish they were more transparent and way less shady. I think the fears are overblown, but we will disagree on that which is fine.

    You always failed to mention though the audited and regulated stable coins like USDC or the Paxos stable coin (blanking on the name)

    The point is if you need a stable coin you definitely don’t need to use tether … ever

    Also while tether remains the largest stable coin its market share has been declining for years. Maybe tether doesn’t blow up. Maybe its market share just continues to decline into irrelevance, that is my hope anyway.
     
    #15     Dec 29, 2022
  6. johnarb

    johnarb

    Paxos renamed the $ stable coin to Pax Dollar symbol USDP

    Paxos is a US-regulated entity, it's also the one that issues Binance USD stablecoin BUSD

    And it has a paper Gold crypto product that is backed 1-to-1 can be redeemed for physical gold PAXG

    PAXG can be used in DeFi for collateral and yield farming

    https://paxos.com/paxgold/


    But my personal choice for stablecoin is Tether USDT. The company works to support and maintain the cryptos ethos of decentralization and censorship-resistance (as much as possible). Won't try to explain it, so please don't ask. iykyk
     
    #16     Dec 29, 2022
  7. Yesterday I was digging into PAXG for a bit, as I've been getting a little more interested into gold-backed tokens. You can't get gold-backed US dollars ever since America defaulted back in 1971, but here is your chance for something else.

    And on that note, there are a lot of these tokens now. I will probably get some Canadian domiciled ones that use gold stored in Canadian vaults.
     
    #17     Dec 29, 2022
    johnarb likes this.
  8. schizo

    schizo

    What makes you think gold-backed tokens are any more reliable than USD-backed (or pegged, or whatever) tokens? As for now, all of these tokens are susceptible to manipulation.
     
    #18     Dec 29, 2022
  9. johnarb

    johnarb

    If you believe in Eth and do not mind holding it, and same goes if you believe in gold, Uniswap Liquidity Pool is offering you over 7% APY by providing liquidity to the dex as an AMM (automated market maker)

    You'll be paid in native tokens (w)Eth and PAXG. nfa

    https://defillama.com/yields?category=All&chain=All&token=PAXG

    upload_2022-12-29_16-50-11.png
     
    #19     Dec 29, 2022
  10. I will look into it possibly later on down the road. For now, I still don't trust Dexes that much due to too many bugs and other exploits always happening. Also, my crypto taxes are getting far too complicated.

    I want to just simplify things and collect my staking dividends from my brokers every week.
     
    #20     Dec 29, 2022