entity · derived
Stablecoins
Derived node: assembled mechanically from the claims carrying stablecoins. A roster, not an adjudicated definition.
Every claim under this term
- 3396522-004 : Tether's growth in market capitalization, its stability around one dollar, and investors' use of it as a temporary safe haven provide some empirical support for the proposition that stable cryptocurre
- 3396522-005 : Every stable cryptocurrency project, Tether included, remains afflicted with significant design challenges; no existing design has solved the stability problem.
- 3396522-007 : JPM Coin's closed structure, restricting the token to existing J.P. Morgan clients, is an anachronism, because closed ecosystems are unsustainable in emerging decentralized commerce.
- 3396522-008 : Both collateralization strategies carry significant downsides: fiat collateralized pegs bear the brunt of expensive capital requirements, while cryptocurrency pegs face heavy volatility pressures and
- 3396522-009 : A fiat backed stable cryptocurrency that is not fully collateralized is exposed to arbitrage trade attacks of the kind George Soros used against the pound sterling; full collateralization is therefore
- 3396522-010 : Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liquid; anything less opens arbitrage opportunities of the Soros type.
- 3396522-011 : The minimum price of a fiat backed stable cryptocurrency is the interest rate of the fiat currency it is pegged to, because the collateral must sit liquid rather than earn a return.
- 3396522-012 : Cryptocurrency backed tokens are more expensive than fiat backed tokens because stability is sourced from far more volatile assets, so such tokens must be backed by substantially more than 100 percent
- 3396522-014 : Trading a token directly against a well established stable cryptocurrency removes several layers of conversion fees and eliminates the risk that the bridge currency depreciates during the sequence of
- 3396522-015 : A well established stable cryptocurrency and a universal exchange form a positive feedback loop: the exchange's liquidity is enhanced by the stable cryptocurrency, and the stable currency's stability
- 3396522-016 : Because cryptocurrency transactions are possible without a banking relationship, stable cryptocurrencies can remedy the disproportionate burden that cash economies impose on the poor and the unbanked
- 3396522-024 : Stable cryptocurrencies escape part of the lobbying problem by hardcoding their policy rationales and outcomes into the protocol, which limits the amount of lobbying that can influence policy decision
- 3396522-028 : The authors qualify their own case: stable cryptocurrencies can experiment with monetary policy on an unprecedented scale only because they are insulated from real world complexities and political pos
- 3396522-031 : Currency stability should be used as the consumer facing proxy for interoperability, because teaching the public to value stability is easier than educating it about the blockchain technology that pro
- 3396522-035 : Because stable cryptocurrencies are free of the real world pressures that constrain emerging market currencies, they may be able to experiment with solutions that overcome the currency trilemma, attai
- 3396522-037 : Non speculator lay people will not use cryptocurrencies for daily consumption, groceries, or banking transactions unless the value of the currency is stable; stability is a precondition of ordinary co
- 3396522-039 : Near instant settlement with stable cryptocurrencies removes counterparty risk, and the resulting reduction in counterparty risk boosts consumer confidence and increases transactional certainty relati
- 3406323-018 : Growth in stable cryptocurrencies traces back to attempts to combine the benefits of cryptocurrencies and blockchain with remedies for market volatility, and the growth data suggests demand for volati
- 3406323-022 : People will not enter into long term smart contracts without a stable currency to refer to, since no renter and landlord will gamble future wealth on a lease that may halve or double in value in any g
- 3406323-024 : Because of their disciplining and market stability enhancing effects, stable cryptocurrencies form the backbone of the financial technology infrastructure required for any distributed app economy and
- 3606663-023 : The evolution of the DeFi market and its new monetary system depends on the stability of DeFi products and digital assets, and both stability and adoption of DeFi are undermined by the instability of
- 3782216-027 : A decentralized economy requires stable cryptocurrencies, because renegotiating contracts every time a currency's value changes is inefficient and continually punishes one of the parties.
- 3782216-028 : The lesson of the Soros attack is that when a cryptocurrency is pegged above its true market value, the difference must be fully backed by a foreign reserve of collateral, or financiers can profit by
- 3782216-029 : Maintaining a full reserve is too expensive to be efficient, because every unit of reserve value backing the currency must be held liquid or arbitrage attacks become possible, and liquidity forgoes in
- 3782216-030 : Cryptocurrency backed stablecoins are even more expensive than fiat backed ones, because stability is being sought with far more unstable collateral.
- 3782216-031 : Contrary to the industry practice of full backing, a full reserve is not always necessary, because a currency also has intrinsic worth derived from the authentic economic activity it represents.
- 3782216-032 : Determining what fraction of a currency is hot money is necessary for efficiently defending its stability: overestimating the hot money ratio makes the currency costlier to use, and underestimating it
- 3782216-033 : Because the tension between efficiency and security demands a careful estimate of the hot money ratio, a sophisticated decentralized governance system is crucial for any efficient stablecoin.
- 3782216-034 : Stablecoin collateralization and a robust decentralized economy form a chicken and egg problem: a stablecoin cannot reduce its backing until a robust decentralized economy exists, and that economy can
- 3782216-035 : Trying to hold a peg at an artificial level deters new adopters and punishes existing members, and is the most likely way to induce a death spiral that collapses a currency; after a fundamental change
- 4033886-033 : The stablecoin exists as a response to digital asset price volatility: it is pegged to the value of an external asset, frequently a fiat currency.
- 4900878-035 : Integrating stablecoins pegged to fiat currencies gives a token ecosystem a stable transactional medium and mitigates the volatility that otherwise attaches to cryptocurrencies, alongside DeFi service
- 5454054-003 : Retailer-issued stablecoins operate as an onchain Eurodollar play: they decentralize the creation of dollar-denominated liquidity, which reduces transaction costs and disintermediates traditional bank
- 5454054-004 : The GENIUS Act of 2025 is what makes merchant-issued stablecoins viable, because it supplies the enabling conditions of 1:1 reserve backing, audits, and AML compliance.
- 5454054-005 : The collapse of the metaverse boom forced Silicon Valley firms with metaverse exposure to pivot toward stablecoins and crypto-based rewards, replacing speculative virtual worlds with regulated, utilit