xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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Tired of fees for using Bitcoin? Try Bitcoin no-fee app Strike here starts with $10 for free.
Stablecoin is essential to Defi. However, stablecoin is not as stable as it sounds 🧐.
Particularly, when the market has weakened, the stablecoin likely de-pegged ⚠️.
Stablecoin is not a currency but rather a debt 🧾 you buy from the private reserve.
Of course, you can argue that the US dollar 💵 is not a currency but a debt from the central bank.
However, will you hold stablecoin for the next 30 years compared to keeping the US dollar? It is probably not, simply because you feel it risky ⚡ to have stablecoin.
🤨 How Come Dollar Is So Strong
1️⃣ One way to see the dollar's strength is if many foreign reserves will hold the dollar. The answer is yes. Also, there are many long-term securities backed by the US dollar.
2️⃣ Another way is the broad usage everywhere in the world. Banks around the globe are likely holding more US dollars than stablecoins.
3️⃣ The third way is warfare. When there is a war, the US dollar devalues itself and supplies more cash to fund the war. And it will become stronger when the war has ended.
🤨 How Come Stablecoin Is So Weak
1️⃣ First, stablecoin itself is risky. It is a debt product that unclearly reports its backing assets.
2️⃣ Second, stablecoin is centralized instead of decentralized, which was confirmed by the CEO of Circle, who created the popular stablecoin USDC.
3️⃣ Third, a stablecoin backed by an unstable asset will create volatility in the coin itself. For example, Luna stablecoin UST is backed by Bitcoin.
🤨 How Stablecoin Works
Stablecoin is an arbitrage bot that receives a dollar from investors who purchased stablecoin and stablecoin investors seeking stablecoin in the crypto market.
The bot will pick the best price in the exchange and make a profit with a different price from different investors while adjusting the supply of the stablecoin treasury.
The arbitrage only works when under the normal market condition. However, stablecoin tends to de-peg the US dollar when the market is volatile.
👉 Opinion
Stablecoin is still in the earlier phase of becoming more stable and adopted by other institutional investors. It depends on how transparent their assets backing will reveal to the public.
👋 Follow me here
Tired of fees for using Bitcoin? Try Bitcoin no-fee app Strike here starts with $10 for free.
Stablecoin is essential to Defi. However, stablecoin is not as stable as it sounds 🧐.
Particularly, when the market has weakened, the stablecoin likely de-pegged ⚠️.
Stablecoin is not a currency but rather a debt 🧾 you buy from the private reserve.
Of course, you can argue that the US dollar 💵 is not a currency but a debt from the central bank.
However, will you hold stablecoin for the next 30 years compared to keeping the US dollar? It is probably not, simply because you feel it risky ⚡ to have stablecoin.
🤨 How Come Dollar Is So Strong
1️⃣ One way to see the dollar's strength is if many foreign reserves will hold the dollar. The answer is yes. Also, there are many long-term securities backed by the US dollar.
2️⃣ Another way is the broad usage everywhere in the world. Banks around the globe are likely holding more US dollars than stablecoins.
3️⃣ The third way is warfare. When there is a war, the US dollar devalues itself and supplies more cash to fund the war. And it will become stronger when the war has ended.
🤨 How Come Stablecoin Is So Weak
1️⃣ First, stablecoin itself is risky. It is a debt product that unclearly reports its backing assets.
2️⃣ Second, stablecoin is centralized instead of decentralized, which was confirmed by the CEO of Circle, who created the popular stablecoin USDC.
3️⃣ Third, a stablecoin backed by an unstable asset will create volatility in the coin itself. For example, Luna stablecoin UST is backed by Bitcoin.
🤨 How Stablecoin Works
Stablecoin is an arbitrage bot that receives a dollar from investors who purchased stablecoin and stablecoin investors seeking stablecoin in the crypto market.
The bot will pick the best price in the exchange and make a profit with a different price from different investors while adjusting the supply of the stablecoin treasury.
The arbitrage only works when under the normal market condition. However, stablecoin tends to de-peg the US dollar when the market is volatile.
👉 Opinion
Stablecoin is still in the earlier phase of becoming more stable and adopted by other institutional investors. It depends on how transparent their assets backing will reveal to the public.
👋 Follow me here
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