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So, which reputable project can possibly be the next Terra/Luna/UST situation?

Top 4 Stablecoins Compared: Tether (USDT) vs. USD Coin (USDC) vs. Dai (DAI) vs. Pax Dollar (USDP)

Tether just released it's quarterly reserve assesment, and they claim to have access to US$82,424,821,101

Resources on Dai and its ecosystem?

For all you hoping for tether to die a quick and spectacular death, what do you think is going to happen?

Introducing AMM and Proof of Trade Protocol.

r/CryptoCurrencySee Post

USDN looks like the next domino to fall

MakerDAO price rebounds as DAI holds its peg and investors search for stablecoin security

Uncollateralized Algo Stablecoins other than Terra

r/CryptoCurrencySee Post

Discussion about USDT crashing behind the scenes

People were warned about Do Kwon and Luna for weeks, but sources were scoffed at and suppressed. Here's a list of sources and information regarding the events that have unfolded.

Is USDC/DAI a good bet if I want to store my money at an exchange (like Celsius or Nexo) to earn interest?

After 13 years of Crypto, most of the market is still full of shit

Future of stablecoins

r/CryptoCurrencySee Post

The reason why UST failed is much simpler than you think. It doesn't take any fancy attacks

r/CryptoCurrencySee Post

DAI at $1.09 on crypto.com marketplace.

r/CryptoCurrencySee Post

For the sake of crypto Terra Luna needs to DAI

r/CryptoCurrencySee Post

Fallout from the algo-stablecoin apocalypse. Some points:

r/CryptoCurrencySee Post

The most reliable stablecoin

r/CryptoCurrencySee Post

Can someone explain the difference in the stabilization algorithm between DAI and TerraUSD ?

r/CryptoCurrencySee Post

Can someone explain the difference in the stabilization algorithm between DAI and TerraUSD ?

r/CryptoCurrencySee Post

Which stablecoin(s) do you use and why? Can we have a discussion about the volatility of all the stablecoins.

r/CryptoCurrencySee Post

Diversifying your portfolio also applies to using stablecoins.

r/CryptoCurrencySee Post

Any Advice To Help My Coinbase Account?

r/CryptoCurrencySee Post

Don't give up on real algorithmic stable coins because of VC backed ponzi schemes

r/CryptoCurrencySee Post

Is the Plutus really any better than other debit cards or is it just hype?

r/CryptoMoonShotsSee Post

New DeFi project The Void. Fair launch on Fantom! Utilizing QLAAS

r/CryptoCurrencySee Post

Why is USDT still the 3rd crypto for market cap?

r/CryptoCurrencySee Post

It looks like Coinbase has taken a page from Crypto.Com's book

r/CryptoCurrencySee Post

DAI Stuck in wallet

r/CryptoCurrencySee Post

WAX.io seems to have stolen $5 of my DAI.

r/CryptoCurrencySee Post

zkSync Airdrop Guide

r/CryptoCurrencySee Post

Where do you stake your stable coins?

r/CryptoCurrencySee Post

5 Ways To Earn More Money From Your Crypto

r/SatoshiStreetBetsSee Post

UUSD, Backed 1:1 by DAI Stable Coin, The Anonymous Version of DAI Stable Coin?

r/SatoshiStreetBetsSee Post

MakerDAO deploys on layer-2 network StarkNet to enhance functions of DAI stablecoin

r/CryptoCurrencySee Post

How to lose $2K in one click - DON'T USE RUBIC EXCHANGE!

r/CryptoCurrencySee Post

Need help to understand the differences using Nexo or Compound.finance

r/CryptoCurrencySee Post

Universal Basic Income - free to claim for everyone V.B supported

r/CryptoCurrencySee Post

Choosing a Uniswap V3 Price Range: The Fundamentals

r/CryptoCurrencySee Post

Crypto lending these days. One of the most profitable sources of passive income

r/CryptoCurrencySee Post

A true independent stablecoin?

r/CryptoCurrencySee Post

ELI5 Why Are Algorithmic Stablecoins (ie UST) Significant??

r/CryptoCurrencySee Post

Do you diversify your stable coins?

r/CryptoCurrencySee Post

Changelly KYC Scam - They are holding my $19800 BTC hostage

r/BitcoinSee Post

Changelly KYC Scam - They are holding my $19800 BTC hostage

r/CryptoCurrencySee Post

Cosmos (ATOM) passes the v7 Theta upgrade, ETH bridges to Osmosis via Frontier

r/CryptoCurrencySee Post

Help me invest €25k in crypto Reddit

r/CryptoMarketsSee Post

Stablecoin Wars: Terra Wants to Depeg Maker's DAI Stablecoin

r/CryptoCurrencySee Post

Stablecoin Wars: Terra Wants to Depeg Maker's DAI Stablecoin

r/CryptoCurrencySee Post

Battle between decentralised stablecoins just got real! Earlier, Founder of DAI called UST (Terra) a 'solid ponzi". In return, UST has come up with a plan to crush DAI and has teamed up with Frax

r/CryptoMoonShotsSee Post

Earn the highest interest rates with Aqru

r/CryptoCurrencySee Post

Inflationary and Deflationary Currency

r/CryptoMoonShotsSee Post

Earn passive income with Aqru

r/CryptoCurrencySee Post

MakerDAO's DAI Fell Behind Terra's UST Months Ago. Here's How It's Trying to Catch Up - Decrypt

r/CryptoCurrencySee Post

ETH2 staking rewards have dropped to 3.675% on Coinbase

r/CryptoCurrencySee Post

Anyone have a 3CRV DeFi for Dummies guide?

r/CryptoCurrencySee Post

How to Stake ETH in NY?

r/CryptoCurrencySee Post

TUSD has just been added to www.yield.app!

r/CryptoCurrencySee Post

TrueUSD has just been added to www.yield.app.

r/CryptoCurrencySee Post

Noyack Logistics Income becomes the first ever REIT to accept crypto. This is real institutional finance adoption!

r/CryptoMarketsSee Post

Why Polygon is the best chain for stablecoin adoption using AAVE as a prime example of Polygon's liquidity and APY.

r/CryptoMoonShotsSee Post

Welcome to the amazing world of Aqru

r/CryptoMoonShotsSee Post

An overview of the AQRU world and its features

r/CryptoCurrencySee Post

Hackers Stole DAI and ETH Worth $3M in DEUS Finance Hack

r/CryptoCurrencySee Post

Deus Finance exploit: Hackers get away with $3M worth of DAI and Ether

r/CryptoMoonShotsSee Post

How can I earn up to 12% interest with Aqru?

r/CryptoMoonShotsSee Post

Aqru let's start earning interest safely

r/CryptoCurrencySee Post

I'm new to this, how can I stake coins in Canada?

r/CryptoCurrenciesSee Post

How to convert DAI or any other stable coin to TRX?

r/CryptoCurrencySee Post

Why US education system is one of the best - While many government still foolishly equate all crypto with ponzi, scams or gambling, Stanford CS students learn about Impermanent loss in Uniswap, mixing in Tornado Cash, etc.

r/CryptoCurrencySee Post

Following situation on Crypto Market, ETH gas fees are really low! 🔥

r/CryptoCurrencySee Post

Gate.io Fantom Wrapped DAI issue. Reward for resolving.

r/CryptoCurrencySee Post

To ordinary new crypto russians looking to use crypto to hedge against ruble failing or wanting to leave country with your wealth

r/CryptoMoonShotsSee Post

Aqru make a meaningful difference to your finances

r/CryptoCurrenciesSee Post

Coinbase Standard DAI Yield Paused

r/CryptoCurrencySee Post

What’s your Coinbase Card Crypto Reward Choice, Strategy, and Why?

r/CryptoMoonShotsSee Post

What’s your best DEFI/Yield farming strategy?

r/CryptoCurrencySee Post

I sent 38k USDC to Binance from the FTM mainnet. I suppose there's no hope left to recover them?

r/CryptoMarketsSee Post

Introduction to financial risk for stablecoins

r/CryptoMoonShotsSee Post

How do we earn up to 12% interest with Aqru?

r/CryptoMarketsSee Post

ELI5 DeFi and Crypto Terms

r/CryptoMoonShotsSee Post

$MOR: Launching on Fantom on Feb 23: MOR by Growth De-Fi will be the only protocol on Fantom that offers both borrowing/leveraged yield farming with 0% interest loans and no penalties to open or close vaults. GRO holders also get MOR revenue. MOR is currently on AVAX and BSC.

r/CryptoMoonShotsSee Post

Aqru let’s earn up to 12% in the crypto market

r/CryptoCurrencySee Post

Get Paid in Crypto With Coinbase Insured Direct Deposit. "If you choose to get paid in certain cryptos such as stablecoin Dai (DAI) or Algorand (ALGO) you automatically begin earning 4% interest on those deposits -- that's almost like getting a 4% raise."

r/CryptoMoonShotsSee Post

Templar Knights - TemplarDAO live on our 3rd chain - Harmony One

r/CryptoCurrencySee Post

The Nut And Bolts of Nonfungible Tokens! Here is, Why it’s great.

r/CryptoCurrencySee Post

MeMeDAO:Community-driven Venture Capital platform

r/CryptoCurrencySee Post

Why you should stop using USDT and USDC!

r/CryptoCurrencySee Post

USDT, USDC, ADA, DAI - Which is the best stablecoin?

r/CryptoCurrencySee Post

DeFi Strategy Evaluation - What Can Go Wrong?

r/CryptoMoonShotsSee Post

TOR Stablecoin - 40% APR Farming (DAI/USDC) - Hector Finance - $100m treasury

r/CryptoCurrencySee Post

16% crypto cashback card for $9200 (UK and EEU only atm sorry!)

r/CryptoMoonShotsSee Post

Templar Knights | Templardao Is A Decentralized Reserve Currency And Hedge Fund Featuring A Proprietary Treasury-reverse Protocol Available Cross-chain On Bsc, Moonriver And Harmony.

r/CryptoMoonShotsSee Post

Chain League CLG - The first play to earn token in the game League of Legends - ICO launched TODAY! We are on Phase 1 (Iron IV) - Best chance to become an early adopter

r/CryptoMarketsSee Post

Basic Primer to Token Design of DAI (MakerDAO) | The OG Stablecoin

r/CryptoMarketsSee Post

The Economics Design of AMPL Token

r/CryptoCurrencySee Post

Funds not showing in trust wallet from sushi

r/CryptoCurrencySee Post

DeFi insurance and a 30% APY stablecoin fund we should be excited about

Mentions

Came across the APY on Spool despite being a middle ware. Ranges from 13% to 17% with stablecoins including USDC, DAI and USDT. Since it is automated with ready made yield strategies, I think it is more suitable for anyone who doesn't understand the dynamics of how DeFi work, especially in a bear market like this.

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Could you point out the relevant parts of this legislation or at least link it? I'm not familiar with the details. Around half of DAI was generated with USDC collateral as per the link in my last post. If there was some event that crashed USDC to zero, could you describe how DAI could continue?

Mentions:#DAI#USDC

DYOR bro, look at the charts, it has never steadily remained $1 pegged, same with USDC BUSD or DAI

That’s what I’m referring to. They have legislation already written to regulate usdt to the point of being unusable. Janet YELLen has a vendetta against these coins. However all the legislation I’ve read mentions usdt, usdc, but never DAI. The uncertainties regarding DAI refer back to the one event we are all aware of. However that is prior to their diversification. If you dig into Maker DAOs docs they have cleverly assembled a diverse set of collateral, each sitting in a silo via separate trust agreements. By no means am I a maxi on any of these coins. I just do not see any coin that is a perfect fit.

Mentions:#DAI

Staking on LPs is a great way to earn passive income and I'm exploring Spool's APYs on stablecoins ranging from DAI to USDC and the yield platform has gotten a TVR of over $60 million in just a few weeks.

Mentions:#DAI#USDC

Well, while we're on this subject : Some insider info: DEI is transitioning from Algo coin to USDC - FRAX - DAI backed stable coin. Currently worth 60c and soon to be pegged. Great #arbitrage opportunity.

I am also holdin most of the usdt but after ust people gets scared right after just fud. I am also want to diversify the stable coin into usdt, usds, busd and may be some in the DAI is well.

Mentions:#DAI

>Paper backed stabled coins such as USDT inherit more counterparty and regulatory risk than I am comfortable with. Given they are backed by US dollars, they have a single point of failure. They exist only if current administration within the US government allows them to exist. >Call me paranoid, but I would not be surprised at all to wake up and hear that some patriotically named bill passed in the middle of the night regulating these types of coins effectively illegal. What would a scenario like this look like? Would the US government actually do something like, for example, confiscating the funds backing these tokens, or forbidding anyone from exchanging them for dollars? Would they order them to use their freeze functionality to lock down everything in defi apps like Uniswap? The author describes DAI as a hedge against this risk. I like DAI but not convinced about it working for this purpose. It came very close to collapsing a few years ago when Ethereum crashed under $100. They decided to reinforce it by... adding centrally backed assets, mostly stablecoins, [as collateral](https://daistats.com/#/), which are now the majority of it. Considering such a cataclysmic event as the overnight death of USDC and USDT would also cause a massive Ethereum crash, it seems highly unlikely that DAI would be able to retain value when those coins do not. I don't think sudden erratic action to wipe out the wealth of a whole class of investors is really their style though; seems more likely that any harmful regulation will be of the slow and insidious type, though this could be wrong.

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Mentions:#USDC#DAI

He ought to at least disclose the potential conflict in his article, which he doesn't. Years ago I remember him comparing Maker/DAI to a perpetual motion machine. He also wrote an anti-Bitcoin article in 2014. Far from an impartial voice.

Mentions:#DAI

#Terra Pro-Arguments Below is an argument written by idevcg which won 3rd place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Terra Luna's UST has surpassed makerDAO's DAI as the largest (by marketcap) algorithmic stablecoin, despite the fact that DAI has been around for much longer. > > Do Kwon, Terra's founder has recently announced that Terra plans to buy [11 billion dollars worth of bitcoin](https://cryptosnewss.com/terra-ust-buys-125-million-worth-of-btc-out-of-11-2-billion-planned-to-acquire-in-three-month-period/) in the next 3 months, to further diversify the backing of UST to make sure that UST can continue to maintain it's peg to the USD. > > The Anchor protocol, which is an essential part of the Terra ecosystem, offers an unprecedented 19.5-20.5% APR on UST. It has run smoothly for over a year without any problems, unlike many other stablecoins promising high returns but ended up rugpulling. > > [According to Electric Capital](https://youtu.be/_ZKsunlK7sA?t=4628), from December 2020 to December 2021, Terra is no.1 in the fastest growing ecosystems, in terms of growth of full time developers, at 313%. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

Mentions:#UST#DAI

So how will crypto ever solve the problem of a trustees stablecoin? Are there any other options? DAI comes to mind but I’ve heard that the way it is designed doesn’t allow it to grow in market cap very much

Mentions:#DAI

Should an average Joe care whether a stablecoin is decentralized or not? I don't see why. DAI is partially backed by USDC so Circle could technically shut alot of it down anyway. Algorithmic stablecoins like UST may not hold against a coordinated attack during volatility. And they may require a high level of centralization to defend its peg during market stress "steady lads, deploying capital" anyway If I'm an average joe, is there any disadvantage to sticking to centralized stablecoins like GUSD/USDC/BUSD/TUSD etc that have 1:1 redemption options through gemini/coinbase/binance/abra?

Lol yeah it is especially things that went mega boom. Though I wasn’t intending to go down that rabbit hole today but ended up down it when I was looking for something about DAI

Mentions:#DAI

Sounds great! I'll look into DAI more. Did you check Fluid yet? I also found a good project called TEAMDAO, also interesting concept. Also, do you think we will see new ATHs for BTC this year?

Mentions:#DAI#BTC

Yeah, but you can't swap gems to DAI on uniswap or honeyswap.

Mentions:#DAI

In a time like this when the market keeps dwindling, the best bet i to settle with stablecoins that have a very strong support with USDT & DAI, hence I believe OUSD is such a good one to settle for at the moment.

I bought a mix of USDC and DAI put them on Compound and then borrowed Tether against it, and then wrapped it around like 4 times, so if Tether does fail, I can pay the loan back and basically triple my $. Seems like a good plan as long as the Tether failure doesn't topple DAI too... but... I'm paying some interest, so I'll give it up eventually (probably days before they actually go under)

Mentions:#USDC#DAI

>I have no idea, I hope someone can explain. I'm curious about ada too, why there's going to be a hard fork and what effect it will have on Ada classic hodlers If you need a USDC trading pair rather than a DAI

Mentions:#USDC#DAI

What are some example situations where it is better to convert DAI on coinbase into USDC instead into USD fiat? 'um you convert to USDC when you want to send it places faster and don't mine eating the gas fee' -> right but like what situations would you want to do that? Does coinbase only give 0.15% APY on USDC on its platform and not on fiat USD?

Mentions:#DAI#USDC

I feel a little, but not a lot, better about their holdings. They still don't make my top 5 list: USDC, BUSD, USDP, GUSD, DAI.

We're in a rough patch with crypto when we're all looking at stablecoins wondering if it's gonna swallow our money or not. I'd guess USDC or DAI though.

Mentions:#USDC#DAI

Yep, there’s many safer and more collateralized stablecoins such as DAI, BUSD, and USDC. *thats my rank on best to worst in terms of collateral*

Falls into a few categories 1. There are rivals to Tether that have a 'backing' token, which can absolutely be pumped by a flight from USDT to their stable of choice (not everything is backed by faith/bullshit - for example MKR behind DAI) 2. well meaning people who are new to the space and think they're warning people about a common concern we've all had for at least 5 years 3. non-technical people who can't see that a stable backend by cash and IOUs is different to a 'smart' stable that can be attacked on-chain 4. salty UST holders who want everyone else to suffer 5. shitposters and troublemakers 6. moonfarmers

>**7.** Volatility makes it useless. If I gave you $100 in BTC and it tanks in a day, I did well and you did not. Or the opposite and it goes up. Someone always loses in the transaction. It’s up and down so much even a few percent in a matter of hours. Sure that’s not a big deal for $20-$50 but it is if we’re talking thousands. My “fiat” doesn’t change that much that quick. >**7.** Volatility makes it useless. If I gave you $100 in BTC and it tanks in a day, I did well and you did not. Or the opposite and it goes up. Someone always loses in the transaction. It’s up and down so much even a few percent in a matter of hours. Sure that’s not a big deal for $20-$50 but it is if we’re talking thousands. My “fiat” doesn’t change that much that quick. My response to this is that this person clearly hasn’t experienced [hyperinflation](https://treasuryvault.com/currency-resources/hyperinflation/) of his/her/their own national currency. For instance, **one of the case studies in that link shows that Zimbabwe’s hyperinflation caused their 100-trillion-dollar note to be only worth 40¢ USD causing the worst famine they’d experienced in 60 years.** Venezuela is another example, where their currency dropped to basically nothing overnight. People who were able to buy Bitcoin before this happened were saved from going bankrupt overnight. Of course *hyperinflation* is a more extreme example, but it’s proof that fiat isn’t invincible especially in more unstable countries (i.e. Russia). I just discovered Russia’s rubel has been on the decline for years, from 1993-2022 “100 rubles in 1993 are equivalent to 44,628.79 rubles in 2022. In other words, the purchasing power of ₽100 in 1993 equals ₽44,628.79 today. The average annual inflation rate between these periods has been 23.41%.” [source](https://www.inflationtool.com/russian-ruble/1993-to-present-value?year2=2022&frequency=yearly). **If people from these hyperinflationary economies could have purchased bitcoin or a stable cryptocurrency, then they’d have protected their wealth.** In my opinion, despite not being a HODLer of BTC, I truly believe BTC will continue to increase in value over time (at least until the last coin is minted… not sure what will happen if a lot of miners decide to exit the network at that point). Side note, I’m extremely upset with Terraform Labs for putting a black mark on stable coins with it’s insane algorithm (with the money Kwon had, he should have known his folly, so think he’s completely culpable for the recent debacle and black mark it’s left on many people’s minds). But hope people are able to evaluate actual stable alternatives like USDC or DAI for instance.

Mentions:#BTC#USDC#DAI

I mean you can look at the past week or 2. DAI's MC has been going down with a much smaller drop in ETH.

Mentions:#DAI#ETH

Tradingview. USDC, USDT, DAI are all slightly off peg, with DAI being the closest one to $1

Yeah I been buying more Litecoin & DAI lately. That’s my dynamic duo

Mentions:#DAI

#USDC Con-Arguments Below is an argument written by roberthonker which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/FrogsDoBeCool's submission from last round** > > # USDC - a rocky and unstable future > > disclaimer: I own no usdc. > > * **Background** > * USDC is a crypto coin that has pegged its value to the US dollar, stable coins can be pegged to any value, the US dollar has just been the most common. > * USDC is ran by coinbase and circle [circle](https://www.circle.com/en/) > * Circle had its crypto license in 2015 in America, and plans to go public as a company in America soon. > * **The issues emerge** > * Centralized > * Since USDC is a centralized coin built under circle, a company. They are able to blacklist addresses, [addresses](https://www.theblockcrypto.com/linked/102761/centre-consortium-blacklisted-seven-usdc-addresses-wednesday), require KYC, and hide information. Tether for example, is not USDC, but both are centralized. Since USDC is not public yet as a company, they can still find ways to hide assets off the blockchain, compared to decentralized dapps/tokens. > * There are other crypto stable coins that people who have experience in crypto would prefer to use than USDC, like DAI, a decentralized stablecoin [dai](https://www.yahoo.com/now/dai-stablecoin-171814707.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAE5opszvfPP7xB7BygnlIrhWn4RGb6Wn7mU90omAlAtr8q4CG__AUORgFLRy_JX1XqO2PH-o3hXnjkybFbnmWPXTwdcH7wRZrxxC_2cefHgS9MK-kbe5VCwVrpYA2H_DjPKKfFBdgK4muPDfJyL-aeRekCFQjqSy_8BmRXyGZjsg#:~:text=DAI%20is%20a%20decentralised%20cryptocurrency,which%20makes%20it%20a%20stablecoin) > * Looking at the top holders of USDC there is one wallet/organization that owns 10% of all USDC. [etherscan](https://etherscan.io/token/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48#balances) Which is insanely centralized, the top bitcoin holder has 1% of all bitcoin owned. USDC is vulnerable from being hacked just like every other organization and crypto. > * Circle's assets > * USDC should be backed 1:1, every USDC to every USD. 61% of USDC is backed by USDC or USD, [assets](https://www.ledgerinsights.com/circle-publishes-details-of-usdc-stablecoin-asset-backing/) while this is still high for most banks, Circle will NOT be helped by a bank run. Currently if USDC circle runs out of reserve to pay back people they have no way of dealing with the bank run. > * gas fees > * The gas fees of USDC are way too high to be used as a normal currency. Since USDC runs on ethereum, there are ether gas fees per transaction. Which can get has high as hundreds of dollars, and as low as a few dollars, which is still way too high for any spender. > * USDC is therefore only used for larger purchases in many cases or has been pushed to centralized exchanges like coinbase. Coinbase makes it really easy to spend USDC, at the expense of decentralization. [coinbase card](https://www.coinbase.com/card) > * The US dollar is a shitcoin... > * The inflation rate of the US dollar has only been increasing, and from a personal viewpoint I have seen my grocery expenses rise 30%\~ in the last year. **Dogecoin has a lower inflation rate than the US dollar.** [doge](https://medium.com/yardcouch-com/dogecoins-top-3-problem-f0a901f9cb2c) compared to the US dollar which officially so far has reached 5.4%. > * Due to the US inflation, USDC will simply follow the value of the US dollar, and will deflate its value over time. > * Infact, moving further, $1 in 1950 is worth $11 today. 1/1th of the value, people who have worked their entire lives are pushing against a deflating currency, USDC not only does nothing against this, but tries to propagate it into cryptocurrencies, *crypto being a common hedge against inflation.* [investing in crypto india](https://qz.com/india/2039592/can-bitcoin-help-indians-hedge-against-rising-inflation/) > * Tons of competition > * Hey, Cardano is going to release a stable coin, terra has one, algorand wants one, everyone wants a stablecoin. [stable coins](https://coinmarketcap.com/view/stablecoin/) there's possibly a future for USDC but since they have tons of competition they need to innovate fast. And so far, they aren't. > * Regulation > * The USA wants to ban every stablecoin it can. [bill](https://www.pymnts.com/cryptocurrency/2020/united-states-bill-would-ban-stablecoins-not-approved-by-government/) several bills have been written that knowingly or unknowingly would ban unregulated stablecoins, Circle, being centralized, and approved in America, will most likely comply with regulations. > * Amazing, they won't be banned! No! Their traffic will fall. The feds would use USDC to spy on people in America and outside of America, by giving the blockchain to the American government it basically kills any kind of "cryptographic" use of USDC, basically turning usdc into a paradox. Cryptographic, and used everyday to spy on their users. > * **conclusion** > * USDC has a future as a stablecoin, assuming they solve gas fees, centralization, and defeat all their rivals with innovation. Whenever a new technology comes to fruition we never expect the first few variants to become popular, USDC could be compared to netscape of stablecoins, something better will most likely replace it. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Mentions:#USDC#DAI#Ly

My mushroom spore guy takes payment in crypto - BTC, ETH, BCH, LTC, or DAI.

TLDR: ​ Tether (USDT), number one because it's biggest only problem is that it's never really audited and there are questions about it's reserve. USD Coin (USDC), good track record and solid company behind it but second because it's not as big as tether Dai (DAI), fully decentralised, but number three because it's not as big as tether. Pax Dollar (USDP), only fully certified company who issues it but number fout because it's not as big as tether. It's a dumb article......

DAI and BUSD for me personally, followed by USDC. USDT is dead last, just above UST

Centralized, sadly. The only decentralized stable coin that has stood the test of time so far is DAI. When you compare the adoption of DAI with USDT, USDC and BUSD, you can see that it is only going one way,

The funny thing is anchor's 20% was considered low last year. In fact I think people a lot of time assumed anchor was safer than it was, because its APR was relatively low. Last summer you could easily get 20% in just a basic USDC/DAI pool, probably 40% in looped/leveraged money market deposits, and 20% for lending stable coins to leveraged LP yield gamblers. A lot of people actually didn't bother with more complex positions if they didn't pay 20%, because you could just go to anchor for 20%. This is why I completely agree, you cannot look at APR as an example of if something is safe or not, you absolutely must understand what you are buying and the risks involved.

Mentions:#USDC#DAI

Making a stablecoins LP consisting of DAI, USDC, USDT (pick the two you want) on a DEX (and not some no-name brand new dex, like major reputable DEXs with billions of TVL) can get you this.

#USDC Con-Arguments Below is an argument written by roberthonker which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/FrogsDoBeCool's submission from last round** > > # USDC - a rocky and unstable future > > disclaimer: I own no usdc. > > * **Background** > * USDC is a crypto coin that has pegged its value to the US dollar, stable coins can be pegged to any value, the US dollar has just been the most common. > * USDC is ran by coinbase and circle [circle](https://www.circle.com/en/) > * Circle had its crypto license in 2015 in America, and plans to go public as a company in America soon. > * **The issues emerge** > * Centralized > * Since USDC is a centralized coin built under circle, a company. They are able to blacklist addresses, [addresses](https://www.theblockcrypto.com/linked/102761/centre-consortium-blacklisted-seven-usdc-addresses-wednesday), require KYC, and hide information. Tether for example, is not USDC, but both are centralized. Since USDC is not public yet as a company, they can still find ways to hide assets off the blockchain, compared to decentralized dapps/tokens. > * There are other crypto stable coins that people who have experience in crypto would prefer to use than USDC, like DAI, a decentralized stablecoin [dai](https://www.yahoo.com/now/dai-stablecoin-171814707.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAE5opszvfPP7xB7BygnlIrhWn4RGb6Wn7mU90omAlAtr8q4CG__AUORgFLRy_JX1XqO2PH-o3hXnjkybFbnmWPXTwdcH7wRZrxxC_2cefHgS9MK-kbe5VCwVrpYA2H_DjPKKfFBdgK4muPDfJyL-aeRekCFQjqSy_8BmRXyGZjsg#:~:text=DAI%20is%20a%20decentralised%20cryptocurrency,which%20makes%20it%20a%20stablecoin) > * Looking at the top holders of USDC there is one wallet/organization that owns 10% of all USDC. [etherscan](https://etherscan.io/token/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48#balances) Which is insanely centralized, the top bitcoin holder has 1% of all bitcoin owned. USDC is vulnerable from being hacked just like every other organization and crypto. > * Circle's assets > * USDC should be backed 1:1, every USDC to every USD. 61% of USDC is backed by USDC or USD, [assets](https://www.ledgerinsights.com/circle-publishes-details-of-usdc-stablecoin-asset-backing/) while this is still high for most banks, Circle will NOT be helped by a bank run. Currently if USDC circle runs out of reserve to pay back people they have no way of dealing with the bank run. > * gas fees > * The gas fees of USDC are way too high to be used as a normal currency. Since USDC runs on ethereum, there are ether gas fees per transaction. Which can get has high as hundreds of dollars, and as low as a few dollars, which is still way too high for any spender. > * USDC is therefore only used for larger purchases in many cases or has been pushed to centralized exchanges like coinbase. Coinbase makes it really easy to spend USDC, at the expense of decentralization. [coinbase card](https://www.coinbase.com/card) > * The US dollar is a shitcoin... > * The inflation rate of the US dollar has only been increasing, and from a personal viewpoint I have seen my grocery expenses rise 30%\~ in the last year. **Dogecoin has a lower inflation rate than the US dollar.** [doge](https://medium.com/yardcouch-com/dogecoins-top-3-problem-f0a901f9cb2c) compared to the US dollar which officially so far has reached 5.4%. > * Due to the US inflation, USDC will simply follow the value of the US dollar, and will deflate its value over time. > * Infact, moving further, $1 in 1950 is worth $11 today. 1/1th of the value, people who have worked their entire lives are pushing against a deflating currency, USDC not only does nothing against this, but tries to propagate it into cryptocurrencies, *crypto being a common hedge against inflation.* [investing in crypto india](https://qz.com/india/2039592/can-bitcoin-help-indians-hedge-against-rising-inflation/) > * Tons of competition > * Hey, Cardano is going to release a stable coin, terra has one, algorand wants one, everyone wants a stablecoin. [stable coins](https://coinmarketcap.com/view/stablecoin/) there's possibly a future for USDC but since they have tons of competition they need to innovate fast. And so far, they aren't. > * Regulation > * The USA wants to ban every stablecoin it can. [bill](https://www.pymnts.com/cryptocurrency/2020/united-states-bill-would-ban-stablecoins-not-approved-by-government/) several bills have been written that knowingly or unknowingly would ban unregulated stablecoins, Circle, being centralized, and approved in America, will most likely comply with regulations. > * Amazing, they won't be banned! No! Their traffic will fall. The feds would use USDC to spy on people in America and outside of America, by giving the blockchain to the American government it basically kills any kind of "cryptographic" use of USDC, basically turning usdc into a paradox. Cryptographic, and used everyday to spy on their users. > * **conclusion** > * USDC has a future as a stablecoin, assuming they solve gas fees, centralization, and defeat all their rivals with innovation. Whenever a new technology comes to fruition we never expect the first few variants to become popular, USDC could be compared to netscape of stablecoins, something better will most likely replace it. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Mentions:#USDC#DAI#Ly

#USDC Con-Arguments Below is an argument written by roberthonker which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/FrogsDoBeCool's submission from last round** > > # USDC - a rocky and unstable future > > disclaimer: I own no usdc. > > * **Background** > * USDC is a crypto coin that has pegged its value to the US dollar, stable coins can be pegged to any value, the US dollar has just been the most common. > * USDC is ran by coinbase and circle [circle](https://www.circle.com/en/) > * Circle had its crypto license in 2015 in America, and plans to go public as a company in America soon. > * **The issues emerge** > * Centralized > * Since USDC is a centralized coin built under circle, a company. They are able to blacklist addresses, [addresses](https://www.theblockcrypto.com/linked/102761/centre-consortium-blacklisted-seven-usdc-addresses-wednesday), require KYC, and hide information. Tether for example, is not USDC, but both are centralized. Since USDC is not public yet as a company, they can still find ways to hide assets off the blockchain, compared to decentralized dapps/tokens. > * There are other crypto stable coins that people who have experience in crypto would prefer to use than USDC, like DAI, a decentralized stablecoin [dai](https://www.yahoo.com/now/dai-stablecoin-171814707.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAE5opszvfPP7xB7BygnlIrhWn4RGb6Wn7mU90omAlAtr8q4CG__AUORgFLRy_JX1XqO2PH-o3hXnjkybFbnmWPXTwdcH7wRZrxxC_2cefHgS9MK-kbe5VCwVrpYA2H_DjPKKfFBdgK4muPDfJyL-aeRekCFQjqSy_8BmRXyGZjsg#:~:text=DAI%20is%20a%20decentralised%20cryptocurrency,which%20makes%20it%20a%20stablecoin) > * Looking at the top holders of USDC there is one wallet/organization that owns 10% of all USDC. [etherscan](https://etherscan.io/token/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48#balances) Which is insanely centralized, the top bitcoin holder has 1% of all bitcoin owned. USDC is vulnerable from being hacked just like every other organization and crypto. > * Circle's assets > * USDC should be backed 1:1, every USDC to every USD. 61% of USDC is backed by USDC or USD, [assets](https://www.ledgerinsights.com/circle-publishes-details-of-usdc-stablecoin-asset-backing/) while this is still high for most banks, Circle will NOT be helped by a bank run. Currently if USDC circle runs out of reserve to pay back people they have no way of dealing with the bank run. > * gas fees > * The gas fees of USDC are way too high to be used as a normal currency. Since USDC runs on ethereum, there are ether gas fees per transaction. Which can get has high as hundreds of dollars, and as low as a few dollars, which is still way too high for any spender. > * USDC is therefore only used for larger purchases in many cases or has been pushed to centralized exchanges like coinbase. Coinbase makes it really easy to spend USDC, at the expense of decentralization. [coinbase card](https://www.coinbase.com/card) > * The US dollar is a shitcoin... > * The inflation rate of the US dollar has only been increasing, and from a personal viewpoint I have seen my grocery expenses rise 30%\~ in the last year. **Dogecoin has a lower inflation rate than the US dollar.** [doge](https://medium.com/yardcouch-com/dogecoins-top-3-problem-f0a901f9cb2c) compared to the US dollar which officially so far has reached 5.4%. > * Due to the US inflation, USDC will simply follow the value of the US dollar, and will deflate its value over time. > * Infact, moving further, $1 in 1950 is worth $11 today. 1/1th of the value, people who have worked their entire lives are pushing against a deflating currency, USDC not only does nothing against this, but tries to propagate it into cryptocurrencies, *crypto being a common hedge against inflation.* [investing in crypto india](https://qz.com/india/2039592/can-bitcoin-help-indians-hedge-against-rising-inflation/) > * Tons of competition > * Hey, Cardano is going to release a stable coin, terra has one, algorand wants one, everyone wants a stablecoin. [stable coins](https://coinmarketcap.com/view/stablecoin/) there's possibly a future for USDC but since they have tons of competition they need to innovate fast. And so far, they aren't. > * Regulation > * The USA wants to ban every stablecoin it can. [bill](https://www.pymnts.com/cryptocurrency/2020/united-states-bill-would-ban-stablecoins-not-approved-by-government/) several bills have been written that knowingly or unknowingly would ban unregulated stablecoins, Circle, being centralized, and approved in America, will most likely comply with regulations. > * Amazing, they won't be banned! No! Their traffic will fall. The feds would use USDC to spy on people in America and outside of America, by giving the blockchain to the American government it basically kills any kind of "cryptographic" use of USDC, basically turning usdc into a paradox. Cryptographic, and used everyday to spy on their users. > * **conclusion** > * USDC has a future as a stablecoin, assuming they solve gas fees, centralization, and defeat all their rivals with innovation. Whenever a new technology comes to fruition we never expect the first few variants to become popular, USDC could be compared to netscape of stablecoins, something better will most likely replace it. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Mentions:#USDC#DAI#Ly

Isn’t DAI a stable coin backed by Allianceblock? Looks like I’ve seen an article about it.

Mentions:#DAI

Thing is, they said they did: *"The main stablecoin we use is USDC. The other stablecoins we may also use are UST and DAI."* and *"We allocate funds across a number of stablecoins to not be fully exposed to the potential instability of one stablecoin"*

Mentions:#USDC#UST#DAI

Yeah people have the screenshot receipts on Twitter with the changes they made after the fact. Seems pretty obvious false advertising to me. They went from saying that they held user deposits in USDC, UST, DAI, and others to saying that they actually only held deposits in UST. The assumption by the customers was that Stablegains was spreading customer risk in order to give them give a 15% return vs a 20% return directly through anchor UST. I never ended up using them but would’ve been fine with that trade off if the risk was spread out among various stablecoins. For a company called “Stablegains” you’d expect more. Really disappointing. But greed. They saw an ability to potentially leech more revenue off customer’s savings accounts rather than reduce risk to the users. They’re complicit and should be held accountable.

Mentions:#USDC#UST#DAI

#Tether Con-Arguments Below is an argument written by roberthonker which won 2nd place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/maleficent_plankton's submission from last round** > > Tether is a centralized coin backed by BitFinex. Cypherpunks would probably want to stick to a decentralized coin like DAI. > > **Fees**: > > * Tether mainly supports Ethereum's ERC20 and Tron's TRC20 networks. Since most platforms mainly support ERC20, you're often stuck with high ERC20 gas fees when transferring tether. > * In addition, no platforms offer fiat onramping/offramping without fees for tether. Even on Bitfinex, you pay fees unless you have a 30-day trading volume of [over $15 million](https://www.bitfinex.com/fees/). > > **Stability**: > > * USDT is less stable on price charts (Coingecko and Coinmarketcap) than its #1 and #2 competitors, USDC and BUSD. > > **It has a long history of deception and avoiding transparency**: > > - What is known is that it was never completely backed by fiat-equivalents and treasuries. Instead it was and still is backed by a mix of fiat equivalents, bond-equivalents, nearly 50% Chinese commercial paper, other unstable assets. It has shady history of backing. > - In 2018, the New York state Attorney General found that Tether had [no reserves to back the stablecoins in circulation for periods of time](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin). Tether lied that they had backing and ended up [settling $18M](https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settlement-with-new-york-attorney-general.html) for it. When they said they had backing, they always gave very vague terms of how it was backed. > - The [Feb 28, 2021 attestation by Moore](https://tether.to/wp-content/uploads/2021/03/tether-assurance-feb-2021.pdf) revealed almost almost no details of the specific asset class backing of Tether, adding to its mystery. > - It wasn't until June 30, 2021 that Tether [published detailed information about its backings](https://tether.to/wp-content/uploads/2021/08/tether_assuranceconsolidated_reserves_report_2021-06-30.pdf). 36% of holdings were secured by cash equivalents, notes, and treasury bills. ~15% of its reserves were backed by higher-risk assets such as corporate bonds, secured loans, precious metals, and other cryptocoins. About 50% of its reserves were backed by commercial paper & CDs, compared to [9% of Circle's USDC](https://www.centre.io/hubfs/pdfs/attestation/Grant-Thorton_circle_usdc_reserves_07162021.pdf). Only 47% of Tether's commercial paper and CD backings were grade A-1 and above, compared to 100% for Circle's USDC. > - Its backings are worse than USDC's in EVERY way. And [TUSD](https://blog.trusttoken.com/attestations-of-truecurrency-funds-examined-march-31-2020-61daf0396eb6) and [Gemini's GUSD](https://www.gemini.com/dollar) have even better backings. > - There is a [CNBC interview of BitFinex CTO](https://www.youtube.com/watch?v=ZBEqyiO35cQ) where they asked more details about Tether's backing, and the CTO basically skirted the question and didn't provide details about the commercial paper except that they were of Chinese companies. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz45ef/rcc_cointest_top_10_tether_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

#Tether Con-Arguments Below is an argument written by roberthonker which won 2nd place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/maleficent_plankton's submission from last round** > > Tether is a centralized coin backed by BitFinex. Cypherpunks would probably want to stick to a decentralized coin like DAI. > > **Fees**: > > * Tether mainly supports Ethereum's ERC20 and Tron's TRC20 networks. Since most platforms mainly support ERC20, you're often stuck with high ERC20 gas fees when transferring tether. > * In addition, no platforms offer fiat onramping/offramping without fees for tether. Even on Bitfinex, you pay fees unless you have a 30-day trading volume of [over $15 million](https://www.bitfinex.com/fees/). > > **Stability**: > > * USDT is less stable on price charts (Coingecko and Coinmarketcap) than its #1 and #2 competitors, USDC and BUSD. > > **It has a long history of deception and avoiding transparency**: > > - What is known is that it was never completely backed by fiat-equivalents and treasuries. Instead it was and still is backed by a mix of fiat equivalents, bond-equivalents, nearly 50% Chinese commercial paper, other unstable assets. It has shady history of backing. > - In 2018, the New York state Attorney General found that Tether had [no reserves to back the stablecoins in circulation for periods of time](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin). Tether lied that they had backing and ended up [settling $18M](https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settlement-with-new-york-attorney-general.html) for it. When they said they had backing, they always gave very vague terms of how it was backed. > - The [Feb 28, 2021 attestation by Moore](https://tether.to/wp-content/uploads/2021/03/tether-assurance-feb-2021.pdf) revealed almost almost no details of the specific asset class backing of Tether, adding to its mystery. > - It wasn't until June 30, 2021 that Tether [published detailed information about its backings](https://tether.to/wp-content/uploads/2021/08/tether_assuranceconsolidated_reserves_report_2021-06-30.pdf). 36% of holdings were secured by cash equivalents, notes, and treasury bills. ~15% of its reserves were backed by higher-risk assets such as corporate bonds, secured loans, precious metals, and other cryptocoins. About 50% of its reserves were backed by commercial paper & CDs, compared to [9% of Circle's USDC](https://www.centre.io/hubfs/pdfs/attestation/Grant-Thorton_circle_usdc_reserves_07162021.pdf). Only 47% of Tether's commercial paper and CD backings were grade A-1 and above, compared to 100% for Circle's USDC. > - Its backings are worse than USDC's in EVERY way. And [TUSD](https://blog.trusttoken.com/attestations-of-truecurrency-funds-examined-march-31-2020-61daf0396eb6) and [Gemini's GUSD](https://www.gemini.com/dollar) have even better backings. > - There is a [CNBC interview of BitFinex CTO](https://www.youtube.com/watch?v=ZBEqyiO35cQ) where they asked more details about Tether's backing, and the CTO basically skirted the question and didn't provide details about the commercial paper except that they were of Chinese companies. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz45ef/rcc_cointest_top_10_tether_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Why not DAI?

Mentions:#DAI

How about switching to decentralized stablez, DAI seems like a great option for that?

Mentions:#DAI

USDC, GUSD, PUSD and BUSD are all significantly regulated. All of these are significantly regulated by many states, which limits what reserves it can use. They have regular attestations and some audits. The latter 3 are most strictly regulated imo (by the New York Department of Financial Services, which is stricter than some others). Some folks like the NYDFS bit for non-USDC, but some folks value USDC's relationships with BlackRock and Fidelity even more. In any case - I trust all 4 of those more than any other stablecoins. DAI is close.

>and neither did you. Here's a [comment](https://www.np.reddit.com/r/Buttcoin/comments/rclecv/so_somebody_explain_to_me_how_tether_can_be_used/hnyn4p2/?context=3) I made on the topic from five months ago. This one is over on buttcoin and about DAI and MIM, not Terra specifically, but the same principle remains.

Mentions:#DAI#MIM

I sympathize with the loss of many people who bought LUNA & UST. I damn happy left only BUSD and USDC in pools on wowswap fenced myself from buying those both. DAI seems safer to me in that respect if you compare decentralized stablez

#USDC Con-Arguments Below is an argument written by roberthonker which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Taken from u\/FrogsDoBeCool's submission from last round** > > # USDC - a rocky and unstable future > > disclaimer: I own no usdc. > > * **Background** > * USDC is a crypto coin that has pegged its value to the US dollar, stable coins can be pegged to any value, the US dollar has just been the most common. > * USDC is ran by coinbase and circle [circle](https://www.circle.com/en/) > * Circle had its crypto license in 2015 in America, and plans to go public as a company in America soon. > * **The issues emerge** > * Centralized > * Since USDC is a centralized coin built under circle, a company. They are able to blacklist addresses, [addresses](https://www.theblockcrypto.com/linked/102761/centre-consortium-blacklisted-seven-usdc-addresses-wednesday), require KYC, and hide information. Tether for example, is not USDC, but both are centralized. Since USDC is not public yet as a company, they can still find ways to hide assets off the blockchain, compared to decentralized dapps/tokens. > * There are other crypto stable coins that people who have experience in crypto would prefer to use than USDC, like DAI, a decentralized stablecoin [dai](https://www.yahoo.com/now/dai-stablecoin-171814707.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAE5opszvfPP7xB7BygnlIrhWn4RGb6Wn7mU90omAlAtr8q4CG__AUORgFLRy_JX1XqO2PH-o3hXnjkybFbnmWPXTwdcH7wRZrxxC_2cefHgS9MK-kbe5VCwVrpYA2H_DjPKKfFBdgK4muPDfJyL-aeRekCFQjqSy_8BmRXyGZjsg#:~:text=DAI%20is%20a%20decentralised%20cryptocurrency,which%20makes%20it%20a%20stablecoin) > * Looking at the top holders of USDC there is one wallet/organization that owns 10% of all USDC. [etherscan](https://etherscan.io/token/0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48#balances) Which is insanely centralized, the top bitcoin holder has 1% of all bitcoin owned. USDC is vulnerable from being hacked just like every other organization and crypto. > * Circle's assets > * USDC should be backed 1:1, every USDC to every USD. 61% of USDC is backed by USDC or USD, [assets](https://www.ledgerinsights.com/circle-publishes-details-of-usdc-stablecoin-asset-backing/) while this is still high for most banks, Circle will NOT be helped by a bank run. Currently if USDC circle runs out of reserve to pay back people they have no way of dealing with the bank run. > * gas fees > * The gas fees of USDC are way too high to be used as a normal currency. Since USDC runs on ethereum, there are ether gas fees per transaction. Which can get has high as hundreds of dollars, and as low as a few dollars, which is still way too high for any spender. > * USDC is therefore only used for larger purchases in many cases or has been pushed to centralized exchanges like coinbase. Coinbase makes it really easy to spend USDC, at the expense of decentralization. [coinbase card](https://www.coinbase.com/card) > * The US dollar is a shitcoin... > * The inflation rate of the US dollar has only been increasing, and from a personal viewpoint I have seen my grocery expenses rise 30%\~ in the last year. **Dogecoin has a lower inflation rate than the US dollar.** [doge](https://medium.com/yardcouch-com/dogecoins-top-3-problem-f0a901f9cb2c) compared to the US dollar which officially so far has reached 5.4%. > * Due to the US inflation, USDC will simply follow the value of the US dollar, and will deflate its value over time. > * Infact, moving further, $1 in 1950 is worth $11 today. 1/1th of the value, people who have worked their entire lives are pushing against a deflating currency, USDC not only does nothing against this, but tries to propagate it into cryptocurrencies, *crypto being a common hedge against inflation.* [investing in crypto india](https://qz.com/india/2039592/can-bitcoin-help-indians-hedge-against-rising-inflation/) > * Tons of competition > * Hey, Cardano is going to release a stable coin, terra has one, algorand wants one, everyone wants a stablecoin. [stable coins](https://coinmarketcap.com/view/stablecoin/) there's possibly a future for USDC but since they have tons of competition they need to innovate fast. And so far, they aren't. > * Regulation > * The USA wants to ban every stablecoin it can. [bill](https://www.pymnts.com/cryptocurrency/2020/united-states-bill-would-ban-stablecoins-not-approved-by-government/) several bills have been written that knowingly or unknowingly would ban unregulated stablecoins, Circle, being centralized, and approved in America, will most likely comply with regulations. > * Amazing, they won't be banned! No! Their traffic will fall. The feds would use USDC to spy on people in America and outside of America, by giving the blockchain to the American government it basically kills any kind of "cryptographic" use of USDC, basically turning usdc into a paradox. Cryptographic, and used everyday to spy on their users. > * **conclusion** > * USDC has a future as a stablecoin, assuming they solve gas fees, centralization, and defeat all their rivals with innovation. Whenever a new technology comes to fruition we never expect the first few variants to become popular, USDC could be compared to netscape of stablecoins, something better will most likely replace it. ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/umsqe8/monthly_optimists_discussion_may_2022/).

Mentions:#USDC#DAI#Ly

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. \[4\], \[5\] And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. \[6\] > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. \[7\] > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In September 2021, this difference is much smaller and USDT is now only 2 times bigger than USDC. One can argue that 2 times bigger market cap is still a big difference but be aware that **between April 2021 and September 2021 market cap of USDC grew by 200% while Tether’s market cap grew by 10%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead \[8\]. As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. \[10\] > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz482n/rcc_cointest_top_10_usd_coin_proarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

DAI is not ‘algorithmic’, it’s overcollaterized. Algorithmic stablecoins like UST, USDD use a burn/mint mechanism to maintain the peg, collateralized stablecoins are backed by actual assets. But agreed that I’d personally also use USDC over DAI if possible, though DAI is potentially more ‘decentralized’ because they cannot unilaterally freeze your DAI unlike Circles can, I believe.

If you're going to use an algorithmic stablecoin mostly backed by USDC why not just use USDC? If USDC goes down your DAI is fucked, but if USDC stays strong your DAI could still get fucked by other algorithmic attacks/hacks.

Mentions:#USDC#DAI

DAI is overcollateralized, and backed mostly by USDC. I choose DAI over USDT on any given day.

LUNA would have survived longer imo if he could shut his big mouth and stop talking shit in the internet. That genuinely put a shooting target on him and his projects. Whether UST can take over DAI is another question. DAI has been in crypto space since 2017 and is one of the most popular stablecoin imo. Yeah but it is irrelevant now

Mentions:#LUNA#UST#DAI

Don't use anything centralized. Use true decentralized coin DAI. Sleep well.

Mentions:#DAI

I never understood this either. Never used UST after I learned. It’s not like it’s hard with USDC and DAI available everywhere.

Mentions:#UST#USDC#DAI

Fully backed by USD (60%) and USD denominated assets (debt securities and bonds). BUSD is backed by USD. DAI is backed in part by USDC and the crypto people put as collateral to borrow DAI so from what I understand they're potentially at risk of depegging upwards if margin calls start to happen but I would need someone to expand on that because I'm still half awake... But they're over overcollaterized I personally am only invested in BUSD and USDC that I own put in liquidity pools.

He was so sure UST was gonna take out DAI 😂 😂 look how that ended up...

Mentions:#UST#DAI

The question is if Tether dies what happens to USDC, DAI and BUSD? Will they loose peg to or will people just move their USDT into those

Tether FUD is as old as USDT has existed.. Probably some truth in it, probably people are overthinking it also. DAI and perhaps USDC are better options, but I still don't see the collapse of Tether actually happening.

The LUNA crash was uncalled for. Shook the whole market. I don't know if MKR could fill the spot there. I've heard of DAI but I'd personally invest in projects like BTC, ETH and DVDX, latter for hybrid tokens, particularly. Also, RIDE for their association with Audi

I sympathize with the loss of many people who believed in Terra and UST. I damn happy left only BUSD and USDC in pools on wowswap fenced myself from buying UST. DAI seems safer to me in that respect if you compare decentralized stablez

Isn't DAI pretty transparent about theirs as well

Mentions:#DAI

The problems with the unknown backing of Tether was been known for a while now, but people don't seem to care. Till they do.. Wish everyone would stop using Tether gradually and switch to USDC and DAI for example.

Mentions:#USDC#DAI

DAI is over collateralised and you can check that on chain. BUSD is regulatory compliant. USDC isn't the only one.

The proliferation of stable coins completely confused me. DAI came out, saying it was pegged via...what, a bunch of other cryptos or something? More and more popped up and I felt it was only a matter of time until one ate it hard. USDC is the only one I use, with USDT as an intermediary on some CEXs that require it.

If I was a government agency watching, and I had just witnessed the birth of DAI, LUNA would be the project I would back and prop up until it was time to brutally slaughter it. The fact that it is more likely this happened on accident has to have made people at the SEC very relieved.

Mentions:#DAI#LUNA

DAI is also backed by USDC so...

Mentions:#DAI#USDC

All i want is DAI pairs. Everything needs a DAI pair. If they build it we will come.

Mentions:#DAI

3 reasons off the top of my head 1 - On demand liquidity, which means institutions can fund transfers ad-hoc and not hold millions of dollars in literally every currency they service. This frees up literally hundreds of millions of tied up money banks need to hold, in every currency. 2 - The XRPL is FAST. Sure a bank could use USDC, DAI, whatever coin they want, the two main drawbacks here are speed and fees. The XRPL settles in 3-5 seconds and has a flat fee of (I believe) 0.0001 XRP And finally, it's actually less complicated to use XRP, as I mentioned in point 1, you don't need to hold any 3rd party currency. People in general don't know what goes into a "modern" day wire transfer or cross border payment, it's extremely complicated and can actually fail lol.

And I haven’t had a single tether my whole life. Only stable coin I’ve had is DAI while taking out or repaying a loan 🥳

Mentions:#DAI

I see MKR filling the LUNA gap. Anyone else seeing MKR becoming bigger? Their DAI pays .15% yield on Coinbase and is a solid stablecoin.

Mentions:#MKR#LUNA#DAI

Can someone tell me that website that helps you find the cheapest path from exchange to a particular network? I'm trying to buy DAI on Fantom and use Binance to onramp.

Mentions:#DAI

>Why would people use an undercollaterized stablecoin over DAI? Because they can do riskier stuff, like leverage Luna to massively juice yields. LFG has lost any hope of presenting itself as a safe, stable option like Dai. Its only hope is appealing to degens with high risk appetites.

Mentions:#DAI
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