Why are stabelcoins no longer stable?
Blog iconhdk
May 13
This article was prepared for the link3 project, as part of a contest of posts. Stablecoin is commonly consided to be a cryptocurrency whose price is pegged to a particular fiat currency, such as the Dollar or the Euro. Today, the market capitalization of the three most popular stablcoins (USDT, USDC, BUSD) exceeds $120 billion according to Coinlist. However, there are other types of stablcoins, such as DAI (fourth place in the top of stablcoins with a capitalization of $ 5.6 billion). By buy...

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Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs)

Positive Correlation

Positive Correlation

Memorandum of Understanding (MOU)

Memorandum of Understanding (MOU)

Yield to Maturity (YTM)

Yield to Maturity (YTM)

Zero-One Integer Programming

Zero-One Integer Programming

Zero-Coupon Swap

Zero-Coupon Swap

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Yield to Maturity (YTM)
Blog iconhdk
Jul 28
What Is Yield to Maturity (YTM)?Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate. Yield to maturity is also referred to as "book yield" or "redemption yi...
Zero-One Integer Programming
Blog iconhdk
Jul 28
What Is Zero-One Integer Programming?Zero-one integer programming (which can also be written as '0-1' integer programming) is a mathematical method of using a series of binary functions; in particular, yes ('1') and no ('0') answers to arrive at a solution when there are two mutually exclusive options. In the world of finance, zero-one integer programming is often used to provide answers to capital rationing problems, as well as to optimize investment returns and...
Zero-Coupon Swap
Blog iconhdk
Jun 29
What Is a Zero-Coupon Swap?A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate payments is made periodically, as it would be in a plain vanilla swap, but where the stream of fixed-rate payments is made as one lump-sum payment at the time when the swap reaches maturity, instead of periodically over the life of the swap.KEY TAKEAWAYSA zero-coupon swap involves the fixed side of the swap being paid in one lump sum when the contract reaches maturity.The v...
Retained Earnings
Blog iconhdk
Jun 19
What Are Retained Earnings?Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word "retained" captures the fact that because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends and increase when new profits are created.KEY TAKEAWAYS...
Positive Correlation
Blog iconhdk
Jun 16
What Is Positive Correlation?A positive correlation is a relationship between two variables that move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases.KEY TAKEAWAYSA positive correlation is a relationship between two variables that tend to move in the same direction.A positive correlation exists when one variable tends to decrease as the other variable decrea...
Memorandum of Understanding (MOU)
Blog iconhdk
Jun 15
What Is a Memorandum of Understanding (MOU)?A memorandum of understanding is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract. The MOU can be seen as the starting point for negotiations as it defines the scope and purpose of the talks. Such memoranda are most often seen in international treaty negotiations but also may be used in high-stakes business dealings such as mer...
Key Performance Indicators (KPIs)
Blog iconhdk
Jun 14
What Are Key Performance Indicators (KPIs)?Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company's strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.KEY TAKEAWAYSKey performance indicators (KPIs) measure a company's success versus a set of targets, objectives, or industry peers.KPIs can b...
Financial Statements
Blog iconhdk
Jun 10
What Are Financial Statements?Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include theBalance sheetIncome statementCash flow statementKEY TAKEAWAYSFinancial statements are written records that convey the business activities and the financial perf...
Financial Statements
Blog iconhdk
Jun 9
What Are Financial Statements?Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include theBalance sheetIncome statementCash flow statementKEY TAKEAWAYSFinancial statements are written records that convey the business activities and the financial perf...
Debt-Service Coverage Ratio (DSCR)
Blog iconhdk
Jun 8
What Is the Debt-Service Coverage Ratio (DSCR)?The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm's available cash flow to pay current debt obligations. The DSCR shows investors whether a company has enough income to pay its debts.KEY TAKEAWAYSThe debt-service coverage ratio (DSCR) is a measure of the cash flow available to pay current debt obligatio...
Asset Management
Blog iconhdk
Jun 7
What Is Asset Management?Asset management is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value. Asset management professionals perform this service for others. They may also be called portfolio managers or financial advisors. Many work independently while others work for an investment bank or other financial institution.KEY TAKEAWAYSThe goal of asset management is to maximize the value of an investment...