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Privacy policy

Last updated: January 13, 2023

This Privacy Policy describes Our policies and procedures on the collection, use and disclosure of Your information when You use the Service and tells You about Your privacy rights and how the law protects You.

We use Your Personal data to provide and improve the Service. By using the Service, You agree to the collection and use of information in accordance with this Privacy Policy. This Privacy Policy has been created with the help of the TermsFeed Privacy Policy Generator.

## Interpretation and Definitions
### Interpretation
The words of which the initial letter is capitalized have meanings defined under the following conditions. The following definitions shall have the same meaning regardless of whether they appear in singular or in plural.

### Definitions
For the purposes of this Privacy Policy:

- Account means a unique account created for You to access our Service or parts of our Service.
- Company (referred to as either "the Company", "We", "Us" or "Our" in this Agreement) refers to Stablecomp.
- Cookies are small files that are placed on Your computer, mobile device or any other device by a website, containing the details of Your browsing history on that website among its many uses.
- Country refers to: Italy
- Device means any device that can access the Service such as a computer, a cellphone or a digital tablet.
- Personal Data is any information that relates to an identified or identifiable individual.
- Service refers to the Website.
- Service Provider means any natural or legal person who processes the data on behalf of the Company. It refers to third-party companies or individuals employed by the Company to facilitate the Service, to provide the Service on behalf of the Company, to perform services related to the Service or to assist the Company in analyzing how the Service is used.
- Third-party Social Media Service refers to any website or any social network website through which a User can log in or create an account to use the Service.
- Usage Data refers to data collected automatically, either generated by the use of the Service or from the Service infrastructure itself (for example, the duration of a page visit).
- Website refers to Stablecomp, accessible from [https://www.stablecomp.com](link)
- You means the individual accessing or using the Service, or the company, or other legal entity on behalf of which such individual is accessing or using the Service, as applicable.

## Collecting and Using Your Personal Data
### Types of Data Collected
#### Personal Data
While using Our Service, We may ask You to provide Us with certain personally identifiable information that can be used to contact or identify You. Personally identifiable information may include, but is not limited to:
- Email address
- First name and last name
- Usage Data

#### Usage Data
Usage Data is collected automatically when using the Service.

Usage Data may include information such as Your Device's Internet Protocol address (e.g. IP address), browser type, browser version, the pages of our Service that You visit, the time and date of Your visit, the time spent on those pages, unique device identifiers and other diagnostic data.

When You access the Service by or through a mobile device, We may collect certain information automatically, including, but not limited to, the type of mobile device You use, Your mobile device unique ID, the IP address of Your mobile device, Your mobile operating system, the type of mobile Internet browser You use, unique device identifiers and other diagnostic data.

We may also collect information that Your browser sends whenever You visit our Service or when You access the Service by or through a mobile device.

#### Information from Third-Party Social Media Services
The Company allows You to create an account and log in to use the Service through the following Third-party Social Media Services:
- Google
- Facebook
- Twitter
- LinkedIn
If You decide to register through or otherwise grant us access to a Third-Party Social Media Service, We may collect Personal data that is already associated with Your Third-Party Social Media Service's account, such as Your name, Your email address, Your activities or Your contact list associated with that account.

You may also have the option of sharing additional information with the Company through Your Third-Party Social Media Service's account. If You choose to provide such information and Personal Data, during registration or otherwise, You are giving the Company permission to use, share, and store it in a manner consistent with this Privacy Policy.

#### Tracking Technologies and Cookies
We use Cookies and similar tracking technologies to track the activity on Our Service and store certain information. Tracking technologies used are beacons, tags, and scripts to collect and track information and to improve and analyze Our Service. The technologies We use may include:

- Cookies or Browser Cookies. A cookie is a small file placed on Your Device. You can instruct Your browser to refuse all Cookies or to indicate when a Cookie is being sent. However, if You do not accept Cookies, You may not be able to use some parts of our Service. Unless you have adjusted Your browser setting so that it will refuse Cookies, our Service may use Cookies.
- Web Beacons. Certain sections of our Service and our emails may contain small electronic files known as web beacons (also referred to as clear gifs, pixel tags, and single-pixel gifs) that permit the Company, for example, to count users who have visited those pages or opened an email and for other related website statistics (for example, recording the popularity of a certain section and verifying system and server integrity).

Cookies can be "Persistent" or "Session" Cookies. Persistent Cookies remain on Your personal computer or mobile device when You go offline, while Session Cookies are deleted as soon as You close Your web browser. You can learn more about cookies on TermsFeed website article.

We use both Session and Persistent Cookies for the purposes set out below:

**Necessary / Essential Cookies**
Type: Session Cookies
Administered by: Us
Purpose: These Cookies are essential to provide You with services available through the Website and to enable You to use some of its features. They help to authenticate users and prevent fraudulent use of user accounts. Without these Cookies, the services that You have asked for cannot be provided, and We only use these Cookies to provide You with those services.

**Cookies Policy / Notice Acceptance Cookies**
Type: Persistent Cookies
Administered by: Us
Purpose: These Cookies identify if users have accepted the use of cookies on the Website.

**Functionality Cookies**
Type: Persistent Cookies
Administered by: Us
Purpose: These Cookies allow us to remember choices You make when You use the Website, such as remembering your login details or language preference. The purpose of these Cookies is to provide You with a more personal experience and to avoid You having to re-enter your preferences every time You use the Website.

For more information about the cookies we use and your choices regarding cookies, please visit our Cookies Policy or the Cookies section of our Privacy Policy.

### Use of Your Personal Data
The Company may use Personal Data for the following purposes:

- To provide and maintain our Service, including to monitor the usage of our Service.
- To manage Your Account: to manage Your registration as a user of the Service. The Personal Data You provide can give You access to different functionalities of the Service that are available to You as a registered user.
- For the performance of a contract: the development, compliance and undertaking of the purchase contract for the products, items or services You have purchased or of any other contract with Us through the Service.
- To contact You: To contact You by email, telephone calls, SMS, or other equivalent forms of electronic communication, such as a mobile application's push notifications regarding updates or informative communications related to the functionalities, products or contracted services, including the security updates, when necessary or reasonable for their implementation.
- To provide You with news, special offers and general information about other goods, services and events which we offer that are similar to those that you have already purchased or enquired about unless You have opted not to receive such information.
- To manage Your requests: To attend and manage Your requests to Us.
- For business transfers: We may use Your information to evaluate or conduct a merger, divestiture, restructuring, reorganization, dissolution, or other sale or transfer of some or all of Our assets, whether as a going concern or as part of bankruptcy, liquidation, or similar proceeding, in which Personal Data held by Us about our Service users is among the assets transferred.
- For other purposes: We may use Your information for other purposes, such as data analysis, identifying usage trends, determining the effectiveness of our promotional campaigns and to evaluate and improve our Service, products, services, marketing and your experience.

We may share Your personal information in the following situations:

- With Service Providers: We may share Your personal information with Service Providers to monitor and analyze the use of our Service, to contact You.
- For business transfers: We may share or transfer Your personal information in connection with, or during negotiations of, any merger, sale of Company assets, financing, or acquisition of all or a portion of Our business to another company.
- With Affiliates: We may share Your information with Our affiliates, in which case we will require those affiliates to honor this Privacy Policy. Affiliates include Our parent company and any other subsidiaries, joint venture partners or other companies that We control or that are under common control with Us.
- With business partners: We may share Your information with Our business partners to offer You certain products, services or promotions.
- With other users: when You share personal information or otherwise interact in the public areas with other users, such information may be viewed by all users and may be publicly distributed outside. If You interact with other users or register through a Third-Party Social Media Service, Your contacts on the Third-Party Social Media Service may see Your name, profile, pictures and description of Your activity. Similarly, other users will be able to view descriptions of Your activity, communicate with You and view Your profile.
- With Your consent: We may disclose Your personal information for any other purpose with Your consent.

### Retention of Your Personal Data
The Company will retain Your Personal Data only for as long as is necessary for the purposes set out in this Privacy Policy. We will retain and use Your Personal Data to the extent necessary to comply with our legal obligations (for example, if we are required to retain your data to comply with applicable laws), resolve disputes, and enforce our legal agreements and policies.

The Company will also retain Usage Data for internal analysis purposes. Usage Data is generally retained for a shorter period of time, except when this data is used to strengthen the security or to improve the functionality of Our Service, or We are legally obligated to retain this data for longer time periods.

### Transfer of Your Personal Data
Your information, including Personal Data, is processed at the Company's operating offices and in any other places where the parties involved in the processing are located. It means that this information may be transferred to — and maintained on — computers located outside of Your state, province, country or other governmental jurisdiction where the data protection laws may differ than those from Your jurisdiction.

Your consent to this Privacy Policy followed by Your submission of such information represents Your agreement to that transfer.

The Company will take all steps reasonably necessary to ensure that Your data is treated securely and in accordance with this Privacy Policy and no transfer of Your Personal Data will take place to an organization or a country unless there are adequate controls in place including the security of Your data and other personal information.

### Delete Your Personal Data
You have the right to delete or request that We assist in deleting the Personal Data that We have collected about You.

Our Service may give You the ability to delete certain information about You from within the Service.

You may update, amend, or delete Your information at any time by signing in to Your Account, if you have one, and visiting the account settings section that allows you to manage Your personal information. You may also contact Us to request access to, correct, or delete any personal information that You have provided to Us.

Please note, however, that We may need to retain certain information when we have a legal obligation or lawful basis to do so.

### Disclosure of Your Personal Data
#### Business Transactions
If the Company is involved in a merger, acquisition or asset sale, Your Personal Data may be transferred. We will provide notice before Your Personal Data is transferred and becomes subject to a different Privacy Policy.

#### Law enforcement
Under certain circumstances, the Company may be required to disclose Your Personal Data if required to do so by law or in response to valid requests by public authorities (e.g. a court or a government agency).

#### Other legal requirements
The Company may disclose Your Personal Data in the good faith belief that such action is necessary to:
- Comply with a legal obligation
- Protect and defend the rights or property of the Company
- Prevent or investigate possible wrongdoing in connection with the Service
- Protect the personal safety of Users of the Service or the public
- Protect against legal liability

### Security of Your Personal Data
The security of Your Personal Data is important to Us, but remember that no method of transmission over the Internet, or method of electronic storage is 100% secure. While We strive to use commercially acceptable means to protect Your Personal Data, We cannot guarantee its absolute security.

## Children's Privacy
Our Service does not address anyone under the age of 13. We do not knowingly collect personally identifiable information from anyone under the age of 13. If You are a parent or guardian and You are aware that Your child has provided Us with Personal Data, please contact Us. If We become aware that We have collected Personal Data from anyone under the age of 13 without verification of parental consent, We take steps to remove that information from Our servers.

If We need to rely on consent as a legal basis for processing Your information and Your country requires consent from a parent, We may require Your parent's consent before We collect and use that information.

## Links to Other Websites
Our Service may contain links to other websites that are not operated by Us. If You click on a third party link, You will be directed to that third party's site. We strongly advise You to review the Privacy Policy of every site You visit.

We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.

## Changes to this Privacy Policy
We may update Our Privacy Policy from time to time. We will notify You of any changes by posting the new Privacy Policy on this page.

We will let You know via email and/or a prominent notice on Our Service, prior to the change becoming effective and update the "Last updated" date at the top of this Privacy Policy.

You are advised to review this Privacy Policy periodically for any changes. Changes to this Privacy Policy are effective when they are posted on this page.

## Contact Us
If you have any questions about this Privacy Policy, You can contact us:

By email: info@stablecomp.com

By visiting this page on our website: [https://www.stablecomp.com](link)



Privacy Policy

Last updated: January 13, 2023

Please read these terms and conditions carefully before using Our Service.

## Interpretation and Definitions
### Interpretation
The words of which the initial letter is capitalized have meanings defined under the following conditions. The following definitions shall have the same meaning regardless of whether they appear in singular or in plural.

### Definitions
For the purposes of these Terms and Conditions:

- Affiliate means an entity that controls, is controlled by or is under common control with a party, where "control" means ownership of 50% or more of the shares, equity interest or other securities entitled to vote for election of directors or other managing authority.
- Country refers to: Italy
- Company (referred to as either "the Company", "We", "Us" or "Our" in this Agreement) refers to Stablecomp.
- Device means any device that can access the Service such as a computer, a cellphone or a digital tablet.
- Service refers to the Website.
- Terms and Conditions (also referred as "Terms") mean these Terms and Conditions that form the entire agreement between You and the Company regarding the use of the Service. This Terms and Conditions agreement has been created with the help of the TermsFeed Terms and Conditions Generator.
- Third-party Social Media Service means any services or content (including data, information, products or services) provided by a third-party that may be displayed, included or made available by the Service.
- Website refers to Stablecomp, accessible from [https://www.stablecomp.com](link)
- You means the individual accessing or using the Service, or the company, or other legal entity on behalf of which such individual is accessing or using the Service, as applicable.

## Acknowledgment
These are the Terms and Conditions governing the use of this Service and the agreement that operates between You and the Company. These Terms and Conditions set out the rights and obligations of all users regarding the use of the Service.

Your access to and use of the Service is conditioned on Your acceptance of and compliance with these Terms and Conditions. These Terms and Conditions apply to all visitors, users and others who access or use the Service.

By accessing or using the Service You agree to be bound by these Terms and Conditions. If You disagree with any part of these Terms and Conditions then You may not access the Service.

You represent that you are over the age of 18. The Company does not permit those under 18 to use the Service.

Your access to and use of the Service is also conditioned on Your acceptance of and compliance with the Privacy Policy of the Company. Our Privacy Policy describes Our policies and procedures on the collection, use and disclosure of Your personal information when You use the Application or the Website and tells You about Your privacy rights and how the law protects You. Please read Our Privacy Policy carefully before using Our Service.

## Links to Other Websites
Our Service may contain links to third-party web sites or services that are not owned or controlled by the Company.

The Company has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that the Company shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services available on or through any such web sites or services.

We strongly advise You to read the terms and conditions and privacy policies of any third-party web sites or services that You visit.

## Termination
We may terminate or suspend Your access immediately, without prior notice or liability, for any reason whatsoever, including without limitation if You breach these Terms and Conditions.

Upon termination, Your right to use the Service will cease immediately.

## Limitation of Liability
Notwithstanding any damages that You might incur, the entire liability of the Company and any of its suppliers under any provision of this Terms and Your exclusive remedy for all of the foregoing shall be limited to the amount actually paid by You through the Service or 100 USD if You haven't purchased anything through the Service.

To the maximum extent permitted by applicable law, in no event shall the Company or its suppliers be liable for any special, incidental, indirect, or consequential damages whatsoever (including, but not limited to, damages for loss of profits, loss of data or other information, for business interruption, for personal injury, loss of privacy arising out of or in any way related to the use of or inability to use the Service, third-party software and/or third-party hardware used with the Service, or otherwise in connection with any provision of this Terms), even if the Company or any supplier has been advised of the possibility of such damages and even if the remedy fails of its essential purpose.

Some states do not allow the exclusion of implied warranties or limitation of liability for incidental or consequential damages, which means that some of the above limitations may not apply. In these states, each party's liability will be limited to the greatest extent permitted by law.

## "AS IS" and "AS AVAILABLE" Disclaimer
The Service is provided to You "AS IS" and "AS AVAILABLE" and with all faults and defects without warranty of any kind. To the maximum extent permitted under applicable law, the Company, on its own behalf and on behalf of its Affiliates and its and their respective licensors and service providers, expressly disclaims all warranties, whether express, implied, statutory or otherwise, with respect to the Service, including all implied warranties of merchantability, fitness for a particular purpose, title and non-infringement, and warranties that may arise out of course of dealing, course of performance, usage or trade practice. Without limitation to the foregoing, the Company provides no warranty or undertaking, and makes no representation of any kind that the Service will meet Your requirements, achieve any intended results, be compatible or work with any other software, applications, systems or services, operate without interruption, meet any performance or reliability standards or be error free or that any errors or defects can or will be corrected.

Without limiting the foregoing, neither the Company nor any of the company's provider makes any representation or warranty of any kind, express or implied: (i) as to the operation or availability of the Service, or the information, content, and materials or products included thereon; (ii) that the Service will be uninterrupted or error-free; (iii) as to the accuracy, reliability, or currency of any information or content provided through the Service; or (iv) that the Service, its servers, the content, or e-mails sent from or on behalf of the Company are free of viruses, scripts, trojan horses, worms, malware, timebombs or other harmful components.

Some jurisdictions do not allow the exclusion of certain types of warranties or limitations on applicable statutory rights of a consumer, so some or all of the above exclusions and limitations may not apply to You. But in such a case the exclusions and limitations set forth in this section shall be applied to the greatest extent enforceable under applicable law.

## Governing Law
The laws of the Country, excluding its conflicts of law rules, shall govern this Terms and Your use of the Service. Your use of the Application may also be subject to other local, state, national, or international laws.

## Disputes Resolution
If You have any concern or dispute about the Service, You agree to first try to resolve the dispute informally by contacting the Company.

## For European Union (EU) Users
If You are a European Union consumer, you will benefit from any mandatory provisions of the law of the country in which you are resident in.

## United States Legal Compliance
You represent and warrant that (i) You are not located in a country that is subject to the United States government embargo, or that has been designated by the United States government as a "terrorist supporting" country, and (ii) You are not listed on any United States government list of prohibited or restricted parties.

## Severability and Waiver
### Severability
If any provision of these Terms is held to be unenforceable or invalid, such provision will be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect.

### Waiver
Except as provided herein, the failure to exercise a right or to require performance of an obligation under these Terms shall not effect a party's ability to exercise such right or require such performance at any time thereafter nor shall the waiver of a breach constitute a waiver of any subsequent breach.

## Translation Interpretation
These Terms and Conditions may have been translated if We have made them available to You on our Service. You agree that the original English text shall prevail in the case of a dispute.

## Changes to These Terms and Conditions
We reserve the right, at Our sole discretion, to modify or replace these Terms at any time. If a revision is material We will make reasonable efforts to provide at least 30 days' notice prior to any new terms taking effect. What constitutes a material change will be determined at Our sole discretion.

By continuing to access or use Our Service after those revisions become effective, You agree to be bound by the revised terms. If You do not agree to the new terms, in whole or in part, please stop using the website and the Service.

## Contact Us
If you have any questions about these Terms and Conditions, You can contact us:

By email: info@stablecomp.com

By visiting this page on our website: [https://www.stablecomp.com](link)


Terms and conditions

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Stablecomp is proud to announce its new strategic partnership with Portals!

Portals is a liquidity aggregator and leverages the multitude of decentralized exchanges and liquidity pools to offer the most efficient trading to its users. The goal of this collaboration is to improve the experience of Stablecomp users, allowing them to save and maximize.

Distinguished by its widespread influence, Portals operates seamlessly across 9 diverse EVM blockchains, including Ethereum, Avalanche, BNB chain, Optimism, Arbitrum, Base, Fantom, Gnosis, and Polygon. Notably, Portals has earned recognition as the preferred liquidity solution for industry giants such as Yearn Finance and Stake Dao, highlighting its credibility and efficacy in addressing liquidity challenges.

Portals has been integrated to facilitate deposits into certain pools, allowing users to get as many tokens as they need, without leaving the platform. Furthermore, being able to perform any swap in a single transaction makes this integration an exceptional improvement to the entire application.

“We want to establish a long-term strategic partnership based on mutual proactivity in adapting and improving the world of web3 and decentralized finance, making it simple, easy, intuitive. Our primary interest is to take care of our customers and Portals has allowed us to continue to do this.” — Gianluca Landini

💙 We thank you so much for the support shown by each of you during this important period. Enjoy the partnership within our protocol!

| Webiste | Bitmart | Twitter | Telegram |

Stablecomp and Portals: strategic partnership

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PayPal is an online payment platform that allows users to make financial transactions securely over the internet. It was founded in December 1998 and has since become one of the most popular and widely used online payment services. PayPal enables users to send and receive money, make online purchases, and transfer funds electronically. This flexibility has contributed to PayPal's widespread adoption for various online transactions, including e-commerce, freelance work, and personal payments.

Despite its wide adoption, Paypal has decided to enter within Web3 too, in particular it has decided to enter within the stablecoins market with its new stablecoin: PYUSD.

PayPal USD is designed to maintain a stable $1 USD value. It’s backed by dollar deposits, US treasuries, and cash equivalents. Paypal users can now buy, sell, convert, pay, send and receive PYUSD within Paypal applications.

Developers can use PayPal USD as the payments layer to build new services and products on public blockchains. PYUSD is initially built on Ethereum-a blockchain built for programmability, and compatible with the most widely used exchanges, wallets and dApps.

Paypal's strategic goal is to generate a new source of income through the adoption of its stablecoin which allows them to raise liquidity to invest in low-risk, low-return assets.

PYUSD presents itself as a stablecoin straddling two worlds, that of web3 and that of web2, for this reason it could become one of the most important vectors for wider adoption, infact, there are already the first liquidity pools with this stablecoin on some decentralized finance applications!

PayPal enters within Web3 through PYUSD

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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money. Tether has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency.

Every $USDT is 100% backed by reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties that allow to generate profits for the company. Infact Tether's Fourth Quarter Statement Reports Profit of $2.85 Billion and Sets New Records in Excess Reserves of Cash and Cash-Equivalent Supporting Tokens in Circulation. Net profit for 2023 for the Group is $6.2 billion, of which ~$4 billion represented the net operating profits generated by US Treasuries, Reverse Repo and Money market funds while the rest was generated through the performance of other asset classes. The Group achieved new record highs in ownership of US Treasuries too, with $80.3 billion exposure.

Why are its profits now breaking records? USDT today is approaching the $100 billion market capitalization. This means that there is more and more liquid assets to be invested in low risk assets. In addition to buying Treasuries, Tether has also purchased some Bitcoin and has also initialed long-term investments for mining. Diversifying investments for cash flow is crucial to mitigate risks and maximize returns. Investing across various asset classes like tether is doing, reduces the negative impact of specific events on a single sector. This strategy helps ensure a more stable cash flow over time, shielding investors from market fluctuations and providing profit opportunities in diverse economic scenarios. 

Tether tokens exist as digital tokens built on several leading blockchains, including Algorand, Avalanche, Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron and Solana. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of Tether tokens.

USDT is approaching a market cap of 100 billions while Tether generates record profits!

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Yesterday, on the 31st of October 2023, marked fifteen years since an event that has changed the lives of many, swayed the opinion of millions, and divided public opinion for years to come. 

On the 31st of October, 2008, the anonymous Satoshi Nakamoto published the Bitcoin Whitepaper. Peer to Peer, decentralized electronic cash, the first fully functioning Blockchain based Currency. 

Here at Stablecomp, we wanted to take this chance to remind ourselves and our readers of this space’s genesis and core principles, as to look forward with renewed hope and optimism.

2008, year of crisis

Satoshi Nakamoto, whoever he may be, had a clear starting point for Bitcoin, with am even clearer end-catalyst: these were respectively our traditional financial system’s corruption, and the 2008 housing bubble, which quickly turned into a global economic crisis of which we still suffer the effects.

Satoshi acts as an impartial, near ethereal observer for what is apparent to most of those who deal in finance; our traditional system has been scrambling for new solutions ever since the aftermath of the Vietnam War. As the dollar’s status as world reserve currency became more and more unchallenged, so did its inflation rates skyrocket to sustain the country’s aggressive foreign policy expenditures: From Vietnam to Israel, passing by Kuwait, Afghanistan, Iraq and Ukraine, the money flow needed to prop up the U.S.’s, and each following nation’s, national debt became more and more of an overbearing Damocle’s Sword.

This led to the dollar officially becoming independent from gold in 1971, which meant no sight of controlling inflation and national debt, and the subversion of what a banknote always was: a paper symbol for a tangible asset.
In the last five decades, Our economy has seen more and more liberty in policy, with the introduction of financial instruments such as derivatives, which hold near incalculable outstanding debt, and very lax and lenient policies regarding mortgage selling.

Banks treated houses as just another asset, no matter who could realistically afford it or not, gaining more and more commissions each year. Facing the fear of losing their clients to competitors, credit agencies were forced to sustain the fable of most mortgages being Triple A security quality in the eyes of banks, and the default of most of these houses of cards brought us to 2008: unbreakable institutions going bankrupt, millions of people losing their homes and jobs, and a ripple effect that damaged numerous other countries, even forcing Greece and Cypro near the brink of societal collapse.

The Solution

A new solution was needed, And it took place in the last months of 2008: October gave us all Bitcoin, which through its ups and downs has undoubtedly impacted the financial system in a lasting way, introducing the concept of true censorship and inflation resistant, decentralized money.

Ethereum followed shortly after, and from there the floodgates were opened: we now live in a world where government independent, currency tied assets such as Stablecoins exist freely, and DeFi can be surfed for decentralized, low-risk returns.

Stablecomp would have never taken form if not for Satoshi Nakamoto’s protocol: today we remember his lasting contribution to society as a whole, recognizing the Blockchain space’s flaws but looking for an ever-growing, decentralized future.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and Follow our channels:

🌐 [Website](https://www.stablecomp.com/) |✈️ [Telegram](https://t.me/stablecomp) | ✖️ [X](https://twitter.com/Stablecomp_com)

Happy Anniversary, Bitcoin

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As crypto markets rebound following the consistent bullish BTC Spot ETF approval rumours, and stablecoins consequently acquire more trading volume and liquidity, here at Stablecomp we would like to report on one event which has, to an extent, gone under the radar of many Blockchain users and investors: Polygon based USDR, or Real US Dollar, depegging from its original, dollar tied value, to as little as 0.49$.

Tangible DAO, which is behind the product, blames a strictly liquidity connected issue, and promises a relatively quick fix to the negative news. The original statement regarding an eventual depeg, which has been seemingly confirmed by Tangible’s recent statements, read as follows:

“If the collateralization ratio ever drops beneath 100%, then 50% of the rental yield will be automatically redirected to the treasury, recollateralizing the asset and ensuring Real USD is always fully backed.”

Though it is also worth noting that almost two weeks have passed from USDR’s depeg, and its value stands at $0.56 on the dollar.
Without further ado, let us dive into what made Real USD vulnerable, and where it’s potential lies.

**USDR’s structure**

Tangible promised a particular, though seemingly secure and innovative model for USDR, and even through the depeg, the project has never appeared to steer its word away from its good faith, rather falling from grace because of the hardships of calculating an original system for one of the most complicated Blockchain products out there.

Most of the risk tied to a stablecoin, in the eyes of its users, refers to a potential depegging, which implies the digital asset losing its stable value and usually sinking to never foreseen lows. The main cause for a depeg can be found in the project’s reserves: seeing as stable value can only derive from assets that users can swap, with a 1:1 ratio, with their digital counterpart, stablecoins collateralize their token with underlying currency tied goods. For example, Tether (USDT) holds over $70BIL in U.S. Bonds, alongside a variety of different USD tied assets, to make sure it holds its peg.

Tangible planned to launch a dominating, mostly real estate backed stablecoin: the advantage of such a structure lies in the often growing value of this market, which allows for the project to, depending on its market capitalization which dictates how much real estate is purchased to back the token, pay out yearly yield to its holders, in addition to providing a stable, dollar based value.

What also has to be considered is an important variable endogenous to a stablecoin’s reserves, which is how many of these reserves are consistently there for user trading. In addition to being fully backed by stable assets, a stablecoin must have a good portion of these assets available for immediate user redemption. If, for example, a user wants to sell USDR and exchange it for real dollars or any other asset, the project must make sure he can do so without causing any liquidity issues for the protocol, as a centralized exchange would when market making.

USDR’s plan was simple: holding up to a supposed 50% of its reserves in DAI stablecoin to its from the start, other than real estate and the Tangible DAO token, would allow for users to withdraw and exchange as much as 50% of USDR’s market cap at any time, without the project having to face reserve issues. The plan read as follows:

“Real USD is pegged to the dollar so there's no volatility in the price. Further, up to 50% of the backing is held in DAI, meaning 1:1 redemptions are always available which ensures peg stability.
If the collateralization ratio ever drops beneath 100%, then 50% of the rental yield will be automatically redirected to the treasury, recollateralizing the asset and ensuring Real USD is always fully backed."

During the second week of October though, something stopped working.
Warning signs were evident, as the peg never truly reflected the dollar 1:1, remaining mostly around the $0.90 mark: then, as Tangible reported, exceptionally high USDR selling by users caused the project to drain its DAI reserves. This obviously caused what in the traditional finance world would be known as a bank run, with no more assets available for USDR withdrawal, and its subsequent depegging.

**Holders and USDR’s future**

The situation quickly ran amok, with one trader incredibly exchanging $113,000 for a grand total of zero USDC, per CoinTelegraph. Users asked for $10 Million in redemptions on the 12th of October. We quickly discovered that other than DAI, only 15% of USDR was backed by Tangible tokens, while the rest of the stablecoin was collateralized through real estate, though tokenized:

As analyst Tom Wan explained, these assets had been tokenized through Ethereum standard ERC-721, which means that they couldn’t be fractionized to allow for user redemption.

Many holders are now left with many questions and hope, as Tangible Finance has promised to bring back USDR’s peg and 1:1 redemption.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and follow our channels:

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USDR’s depegging: inside the event

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October has seen a very important piece of news in the Blockchain Space: Paolo Ardoino will be the new Tether CEO, replacing Jean-Louis van der Velde, who will stay on as a consultant for the USDT minter. Both men will retain their respective roles as CTO and CEO at BitFinex, the cryptocurrency exchange owned by iFinex, the Hong Kong based owner of both projects.

This means an internal change of guard at the highest level of the biggest stablecoin’s hierarchy, with the direction of this $80BIL behemoth under the supervision of its Italian Chief Technology Officer (CTO) since 2017, now tasked with leading the project towards new horizons.

**USDT’s path**

Tether has started its journey to the top of the Stablecoin market in 2014; After J.R. Willett published his 2012 whitepaper expanding on how to potentially build more cryptocurrencies on top of Bitcoin as a base layer. After a few precursors to Tether such as Mastercoin and RealCoin, the project was officially labeled as Tether in November 2014.

Tether’s has not always been in a state of smooth sailing. As soon as 2015, it was called out for publicly claiming that it was a separate entity from Bitfinex; the stablecoin also claimed to be fully backed from the start, but on-chain analysis suggested otherwise. To this day, no external auditor has been implemented by USDT.

USDT has seen two primary exponential growth periods in its supply; the first ranges from the beginning of 2017 up to September 2018, when the stablecoin went from an outstanding $10 Million to $2.8 Billion, a gigantic 280X growth as Bitcoin’s run to its then-all time high $20,000 price tag took place. And its second, decisive growth spurt came with the subsequent 2021 bull run; as The cryptocurrency market blew through a total $2T market capitalization, Tether officially became the go-to blockchain stablecoin provider having already surpassed Bitcoin in 2019 as the most traded asset in the space.

USDT’s fate is intertwined with cryptocurrency’s short and medium term success, as most investors utilize the stablecoin’s trading pairs to enter the market: its hypothetical collapse would bring about unforeseeable consequences.

**Ardoino’s Profile**

Let’s take a look at how Tether itself chose to present its CTO and new CEO to the world, in a statement released on the 13th of October:

"Ardoino's journey in the cryptocurrency industry began in 2014 when he joined Bitfinex, recognized as the industry’s most advanced and resilient cryptocurrency exchange. At Bitfinex, Ardoino played a pivotal role in enhancing the platform's Bitcoin trading capabilities, rapidly earning recognition for his dedication and profound knowledge of blockchain technology. In 2017, Ardoino assumed the role of Chief Technology Officer at Tether, a leading stablecoin provider. At Tether, Ardoino continued to demonstrate his exceptional ability to drive innovation and expand business horizons. One of his most notable achievements was co-leading the strategy that led to the substantial growth of Tether's market presence and market capitalization, which is currently at a high of USD$83B. This achievement solidified Tether's position as a global stablecoin powerhouse and an indispensable component of the cryptocurrency ecosystem."

The Italian has shown much interest in financial inclusion across the board, which could bring Tether to focus more on building and proposing new technological infrastructure to its users.

Being Ardoino a CTO by trade, we can expect USDT to keep up the pace with crypto’s ever-changing landscape; he has also shown interest in expanding the dollar’s trading influence through the stablecoin he commands. 
It is also worth noting that Tether’s structure has seen relatively no significant change: being a project’s CTO already means being in a project’s shortlist when it comes to important people for its survival and future policies.

Transferring more decisional power to an already fundamental individual is not the same as shaking up a project’s core; however, certain territories which maybe were more valuable to Ardoino than previous leaders might see more exploration by Tether under his leadership. As any stablecoin, USDT’s key feature is its collateralization; as long as the project doesn’t deviate from its capacity to handle daily multi billion dollar withdrawals, this simply means a possibly more versatile technological approach by the crypto giant.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and follow our channels:

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Paolo Ardoino: new USDT CEO

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As The People v. Sam Bankman-Fried rages on, with the disgraced founder of FTX and shadow owner of Alameda Research facing 115 years behind bars, a lot of skeletons in the two organizations’ closet have resurfaced: and while before the most famous of crypto’s failures they might have been seen as standard, last year’s developments have cast new light around them and their potential meaning.

For context, in the remote off-chance that someone reading this is not up to speed with FTX and SBF; In November 2022,the FTX crypto exchange collapsed in a matter from days, after the liquidity crisis of its native token, FTT. As the firm was responsible for over a million users’ funds at the time, its bankruptcy caused a gigantic, multi-billion dollar hole in the market. 

Even through SBF declared numerous times that investing firm Alameda, co-founded by him, and FTX were totally separate, investigators found that over $10BIL in customer funds were passed from FTX to Alameda, which also had a $65BIL credit allowance with the exchange. 
And yesterday, CoinBase director Connor Grogan rekindled the USDT-FTX fire with new findings.


**Grogan’s Analysis**

In a series of tweets, USDT’s minting faced on chain scrutiny once again, after crypto information firm Protos conducted their own analysis and concluded that a whopping $36.7BIL of USDT’s supply was minted by Alameda. This number seems much higher, however, with a previously unnoticed $2.85BIL traced by Grogan to various involved addresses. The complete number of $39.55BIL amounts to 47% of crypto’s biggest stablecoin circulating supply

This has naturally been viewed as concerning for USDT as a whole, as it is just the latest piece of a complex and seemingly tense puzzle; USDT is known for having avoided internal scrutiny numerous times and for its very diversified collateralization, and now that half of its minting has been traced to perhaps the most disgraced firm in the blockchain space, many fears this to signify possible illegalities and hidden agreements between these players; and by association, the ever present fear of USDT depegging and collapsing has risen once again.


**The importance of Calm**

This is where having a level head steps in.
We are all familiar with the crypto space’s reactionary, volatile nature; while in the bull market every single positive piece of news would cause an upsurge in prices, this period of bearish consolidation and lateralization means little to no reaction to positive news, and a whole lot of reaction to Fear, Uncertainty and Doubt.

With Crypto prices already sliding because of a variety of macro concerns, the panic induced liquidity run on USDT and, USD peg notwithstanding, its potential collapse thereafter would be the catalyst of lows we probably have not seen since 2020. This is why detaching ourselves from the facade of what we’re reading is always a smart move. 

While FTX and Alameda are now an example of financial irresponsibility on par with the Madoff Scandal, it is very much worth mentioning that at the time of USDT’s minting, no crypto firms, except for Binance and Coinbase, were as renowned and esteemed as the two giants. And, as the news concerns only the minting side of the stablecoin, we can comfortably presume, unless more evidence is produced, that circulation and collateralization continued as usual through solid and secure assets.

USDT has seen multiple billion dollar withdrawal periods of time, and has never left its users stranded when they desired to redeem their assets - this signifies that the depth of USDT’s reserves is undoubtedly closer to its enormous market capitalization than it is to zero, thus making it near impossible for a “Bank Run” to happen.

Did USDT know more about Alameda and FTX than the general public did at the time of these minting activities? Was the minting of nearly $40BIL USDT followed by dubious loans and credit towards Alameda? As of right now, that’s anyone’s guess. But mass hysteria with no solid evidence wouldn’t help any project, much less one responsible for so many investors’ presence in the cryptocurrency market.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and follow our channels:

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FTX and USDT: A sign of the Times?

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In a significantly tumultuous period for both Stablecoins and Centralized Exchange Binance, often considered the biggest CEX in the world up until 2023, one incredibly important Asian nation has seemingly decided which approach it will have towards the still unsatisfyingly regulated Blockchain product.

With 125 Million inhabitants, Japan is the 11th most populated country on the planet, and one of the largest economies by Groce Domestic Products and in the Import-Export sector: the nation legalized Bitcoin as a form of payment as early as 2017, and it now seems to be calculating its next, bold move in the space: the issuance of Japanese YEN backed stablecoins.

**THE NEWS**

Though until very recently stablecoins were banned in Japan, in December 2022 the Financial Services Agency passed legislation lifting the ban which reigned over foreign-issued Stablecoins. If we add that to the June 2022 regulatory framework emitted specifically for Stablecoins in Japan; the result is a very bullish outlook on them by Japan, especially when compared with other countries’ positions.

This legislative change of heart has brought undisputed interest by crypto’s biggest players to Japan: as its biggest banks started talks to develop nationwide stablecoins in June 2023, Both Circle and Binance showed their hand, and as of last month, Binance and MUFG Bank (The Bank of Tokyo-Mitsubishi UFJ) have stated their intention to launch a YEN Stablecoin for the nation.

MUFG is Japan’s largest bank, and as of 2020 presented $2.27 Trillion AUM (Assets Under Management). Its involvement in such an endeavor, as one of three recognized Megabanks in Japan, is an incredibly telling sign of the direction The Land of the rising Sun is taking with stablecoins.


**JAPAN’S REASONING**

As we briefly stated in this article’s introduction, foreign issued stablecoins, which means virtually all reliable stablecoin players, had been banned in Japan for quite some time. So the legitimate question to ask would be, especially in the current indecisive worldwide environment around crypto: what changed? 

While Japan is one of the biggest economies of the world, it also is renowned for its gigantic National debt, and its near-tragic relationship to the country’s GDP. 
As of June 2023, debt accounted for 224% of Japan’s GDP. We’re talking about approximately $9.1 Trillion, which positions the nation in the top spot of this GDP/debt ratio ranking.

This means that Japan must do everything it can to re-enforce the YEN and its economy, which means buying less foreign products and Debt, through their backed treasury bonds, and finding ways for external entities to invest in Japanese bonds and the japanese economy.

Enter Binance, Circle and the stablecoin sector. 
While stablecoins were initially banned because of the common fear that they would potentially drain liquidity from the nation’s FIAT, centralized financial system, Japanese authorities have quickly realized that as stablecoins comply more and more with user and regulator concerns, the assets backing them are becoming more and more Real World based, to assure the asset’s stability. As the most stable assets in our financial system are those backed directly by national governments, this implicitly means that these stablecoins also buy billions of dollars in national debt, mostly U.S. treasury bonds, to collateralize their product.

As its debt situation is dire, Japan cannot afford to reject a $130 Billion industry, which might just take the pressure off many struggling economies in the future.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and Follow our channels:

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Japan’s change of heart, and possibly its last chance

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Reserves, or the assets held by an entity to fulfill its security and financial practices, are unquestionably the most important part of a Stablecoin’s structure, and in general of a project that needs Liquidity and/or Collateral to financially interact with its users and roadmap.

In the Decentralized Finance world, reserves have become both paramount and a point of political and internal contention; stablecoins need to collateralize their emission through respective asset backed assets. In the case of US Dollar based stablecoins, the projects must guarantee their reserves to be comprised of stable, USD backed or denominated assets, and this means the products being seen as a double-edged sword by the United States financial entities: they could both back U.S. debt through billions and billions of dollars to collateralize their stablecoin emission, and effectively drain liquidity from traditional FIAT currencies. 

In this precarious balance between threat and savior, what we see in major players’ reserves can help us understand their behind closed doors standing with entities such as the Securities and Exchange Commission (SEC), during these precarious regulatory times in the Blockchain space.

**THE NEWS**

In June 2023, MakerDAO, the Decentralized Autonomous Organization behind Maker’s dollar based stablecoin DAI, voted on an expansion of it’s real world asset vault of reserves. As per CoinDesk: 

_”Voters unanimously favored opening a new real-world asset (RWA) vault named BlockTower Andromeda, according to a vote concluded on Thursday. The vault is dedicated to investing a maximum of $1.28 billion in short-dated U.S. Treasury bonds funded by Maker’s overcollateralized DAI stablecoin, according to the proposal.”
This is the latest step towards increasing the project’s ties to real world financial assets, which has been pushed in the crypto world after many stablecoin peg scares and doubts, especially in its main players USDT and USDC._

More than 50% of the Maker Protocol’s yield now come from U.S. Treasury bonds, additionally gaining yield from its 500 Million holdings of USDC through CoinBase Prime, and Gemini’s reward payments for Maker holding GUSD. Maker’s Real World Asset Vault is managed by Asset specialist Monetalis, with its CEO Allan Pederson stating:

_“Through the diversification of its collateral pool with this U.S. Treasury ladder strategy, Maker is taking advantage of the current yield environment and putting its assets to work.”_


**MAKER’S STRUCTURE**

Quoting the Maker Protocol Whitepaper:

>The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, allows users to generate Dai by leveraging collateral assets approved by “Maker Governance.” Maker Governance is the community organized and operated process of managing the various aspects of the Maker Protocol. Dai is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. Resistant to hyperinflation due to its low volatility, Dai offers economic freedom and opportunity to anyone, anywhere.

Maker’s main purpose is that of Decentralized Finance providing through its DAI token, while letting its users govern its emission and parameters through the MakerDAO and its token, MAKER (MKR).

**WHAT THIS IMPLIES**

As can be interpreted through the recent regulatory lens proposed by various governments, the shift of Maker to more U.S. Treasury-based reserves makes it less likely to encounter superficial problems posed by U.S. Financial regulators. However, it also complicates its adoption by BRICS affiliated nations, as the financial direction their taking seems to include less and less purchasing of United States Debt, which stablecoins can directly relieve through this type of reserves structure.

The stability of nation backed yield is also a very important assurance for DAI, and perhaps for MAKR, in terms of having good, compounding liquidity to collateralize the Stablecoin, and help in decentralized liquidity providing.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and Follow our channels:

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MakerDAO and its Treasury Reserves 

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Today, Stablecomp wants to bring you a comparison to the past and present, while looking towards the future horizon of what the stablecoin market can aspire to be.

The first distinction needed to comprehend the similarities between Eurodollars and many Stablecoins is that of Eurodollars compared to the Euro/Dollar exchange pair; while the latter refers to the process of exchanging the two currencies and how much one euro is worth in US Dollars, the former (and the topic of this article) are US Dollar denominated liabilities in a bank outside the United States, or, to better express this concept, liabilities outside of US-based jurisdiction.

**LINES OF COMPARISON**

From the get go, the comparison to the blockchain based asset comes natural in their definition.
Most stablecoins are backed by and denominated through USD, and are in the custody of a non-US based issuer; in other words, most Stablecoins are tokenized EuroDollars, as they are present on a public blockchain.

The assets’ socioeconomic origin can be seen in similar factors;
Both eurodollars and stablecoin presence and growth stems from the perceived US Government overstepping in asset seizure and capital control, as well as the search for better yield on a version of the strongest currency, in practical and commerce terms, currently available.
As the assets lie outside of the Federal Reserve’s control, interest offered to their holders can be higher than that of US Dollars inside America.
Both assets were initially peripheral and now supported by banks, and give former US jurisdictions chances to create a US based financial hub without proverbially bending their political knees.

**THE ROAD TO GLOBAL ADOPTION**

After the Second World War, agreements stemming from Bretton Woods made the US Dollar the currency effectively backing world commerce and trade. Since its control was strictly in US hands, eurodollars were seen with near indifference by the States; however, as the presence of Dollars outside of the United States grew tremendously mainly because of massive stimulus plans for Europe’s rebuild after the conflit such as the Marshall Plan, the White House started to effectively show its fear for the jurisdiction that couldn’t be put in place for these “Foreign Dollars”, especially after the Soviet Union managed to transfer its eurodollars to other jurisdictions before the US could freeze them; this especially showed under the Eisenhower, Johnson and early Nixon administrations, with the turning point coming in 1973, shortly after President Nixon completely suspended the Gold Standard; as Cold War tensions slowly eased, and the economy opened up, fear became acceptance.

We can see a similar process coming to the Stablecoin market; while initially they constituted near zero the total volume of online payment system volume, the niche has been catching up to the main players in this new digital economy and, as they are blockchain based and completely outside of centralized control in most standard cases, most governments and monetary entities started fearing the product, and in the last five years, Fear Uncertainty and Doubt has pervaded investors as many governments mediatically capitalized on certain protocols collapsing.

However, small changes in narrative can be noticed, and governments are starting to divert from overarching monetary entities’ opinion, such as the IMF (International Monetary Fund) or the FATF (Financial Authority TaskForce);
While these entities believe that stablecoin adoption would discourage growth in developing nations’ native currencies and reduce USD liquidity and use significantly, governments are very interested in how US Treasury Bonds, and indirectly Debt, usually collateralizes stabblecoins; the potential to keep the economy going through stablecoin adoption is present, and America knows that their hostility leaves space for opposing nations to capitalize on this new currency era and, as a consequence, potentially detach themselves from the star spangled banner’s dominance.

Even in this bearish phase of the market and general adoption, stablecoin Monthly Active Users (MAU) continue to hold steady, and their exchange volume absolutely dominates the crypto market, even if stablecoins only occupy 10% of its market capitalization; also, american giants such as VISA have started down the road to adoption.

As Stablecoins are of increased interest to governments and institutions, they could be the fundamental ingredient for global Blockchain acceptance.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and Follow our channels:

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EURODOLLARS and STABLECOINS: Back to the Future?

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The market is changing: let’s take a deeper look.

Here at Stablecomp, our primary concern is offering the best outlook on the Stablecoin market available on the market. Binance USD (BUSD) has been a staple of liquidity in the cryptocurrency sector for years, reaching more than $16 Billion in market capitalization; but recent legislative and political pressures on its issuer, with the token being defined as an unregistered security in the United States, have changed its structure and prevalence. Can its de facto substitutive stablecoin, First Digital USD (FDUSD) be trusted to deliver wide scale liquidity and stability to many anxious investors?

BUSD’s halt has been concretely in the air since the beginning of the year. After several investigations into Binance and its operations by U.S. Legislators such as the Securities and Exchange Commission (S.E.C.), which supports the thesis in which Binance has broken several financial laws in its jurisdiction, the first bell started to toll.
In February, the New York Department of Financial Services, regulator for Stablecoin issuer and intermediary Paxos, ordered the company to stop issuing BUSD.
Paxos managed all direct BUSD issuance on the ERC-20 network, with Binance minting pegged tokens on other Blockchains. While the NYDFS doesn’t control these pegged tokens, and circulating tokens would still remain circulating, the targeting of Paxos was a concrete blow to Binance and its Stablecoin.

Paxos kept a 12 month window of support for BUSD redemption, which ends in February 2024. And as August dwindled, the biggest exchange in the world came out with its own position regarding the matter.

Binance confirmed it would, as well, stop supporting BUSD in February 2024; this means that users will not be able to trade or redeem their BUSD in any other cryptocurrency or FIAT currency after this period ending. 
In its statement, the exchange encouraged users to convert their BUSD into FDUSD, a stablecoin issued by Hong Kong based company First Digital since June 2023. First Digital has been operative since 2019, and comes from the traditional finance world; their self-proclaimed mission is to bring tradition to the digital world.

FDUSD is intended to be backed 1:1 in U.S. Dollars or assets of equivalent value. While many worries around fund and liability disclosure and stability have been floating around the space since the Terra and FTX collapses, FDUSD seems to have both areas covered:
The stablecoin and its reserves will have to periodically be subjected to external auditors’ scrutiny to gain an “Attestation of Reserves”; also, it is mandated that First Digital keep the stablecoin’s reserves in segregated accounts.

With the commingling of funds being prohibited, and external audits being mandated, FDUSD seems to be a safe haven for investors who are looking to convert their BUSD at a cost of zero dollars; Binance has confirmed that the trading pair fees are absent.

FDUSD currently has a $393 Million Market capitalization.

Stay tuned to our Blog for everything newsworthy in the Stablecoin sector. Check our homepage for more details and Follow our channels:

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Bye BUSD, Hello FDUSD 

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DeFi protocols have revolutionized the world of Decentralized Finance, offering intermediary-free financial services. Through blockchain technology and the use of smart contracts, DeFi protocols enable users to access services such as loans, cryptocurrency exchanges, staking, and yield farming, all in a decentralized and transparent manner. However, despite offering significant advantages and opportunities, DeFi protocols also come with a range of risks, with technological risk being foremost among them.

While the smart contracts upon which DeFi protocols are built are generally secure, they can be susceptible to programming errors (known as bugs) or other vulnerabilities that could be exploited by malicious actors. Another risk that affects DeFi protocols is liquidity risk. DeFi protocols rely on liquidity provided by users who contribute their resources in exchange for interest or other incentives. However, if a protocol experiences a rapid reduction in liquidity, users might face difficulties in withdrawing or exchanging their assets, potentially leading to considerable financial losses. Additionally, low liquidity can increase the risk of slippage (price deviation) in trades and make financial operations within the protocol less efficient.

Cryptocurrencies, which form the foundation of DeFi protocols, are known for their volatility. This volatility can impact the value of assets held by users and increase the risk of financial losses, especially for those engaged in more complex operations like leveraged trading or yield farming.

Furthermore, even though DeFi protocols are designed to be decentralized, there can be instances of centralization. For example, an entity or a group of entities might hold a significant amount of governance tokens, thereby influencing protocol decisions. This can lead to decisions that favour the personal interests of certain participants at the expense of others.

Another risk inherent in DeFi protocols is cyber risk. DeFi protocols can be susceptible to cyberattacks, fraud, and market manipulation (including algorithmic manipulation). Attacks can encompass phishing, DDoS attacks, smart contract exploits, and other cyber methods to siphon funds from users or manipulate cryptocurrency prices. Moreover, some DeFi projects might actually hide scams or be based on mechanisms that conceal a Ponzi scheme, resulting in significant losses for investors.

What has just been discussed is amplified (in some cases exponentially) by the fact that DeFi protocols often rely on interacting with other protocols and blockchain platforms. This implies that interoperability or compatibility issues can impact the functioning of the protocol and cause losses for users. Additionally, this interdependence between protocols opens up the possibility of malfunctions related to computer problems in a protocol different from the one the user is utilizing.

Finally, like stablecoins, individual DeFi protocols are subject to regulatory risk. Users are exposed to changes in regulations in their country of residence, where regulators could suddenly make the offered service inaccessible.

**Continuing analysis as a solution to mitigate risks**

Operating in the decentralized finance sector, even using simpler and seemingly less risky tools like stablecoins, is never a guarantee of easy and "incredible" returns as many inexperienced users might be led to believe. Due to the variety they encompass, evaluating all the risks associated with a specific operation isn't straightforward, as it involves in-depth knowledge of many aspects, including the technology used, the cryptocurrency market, the development team, and the regulatory framework within which the utilized protocol operates. While audits that projects undergo can indirectly help assess the risks related to their activities, they should not be solely relied upon as reference points for making decisions.

The truth is that the only tool to minimize these risks, especially in such a dynamic and innovative sector, is to continuously conduct research and studies, aided perhaps by tools available, like the risk-reward matrix (which we will discuss later). Here at StableComp, we are well aware of this. Knowledge, however, remains the only weapon at the users' disposal to safeguard themselves from the risks in this and other financial sectors.

Learn more about Stablecomp and how it can help you earn high returns with low risk.
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The Risks of DeFi Protocols and solution to mitigate risks

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USDC is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis. 
Every unit of this cryptocurrency in circulation is backed up by $1 of cash or short-term U.S. Treasury bonds.

USD Coin was founded by Circle, a peer-to-peer payment services company, and Coinbase in September 2018 and now it’s the second most important stablecoin on the crypto market as the graph below shows. It can also be noted that during the market crash the dominance of stablecoins increased significantly.

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The transparency over the provenance of its funds has been a big reason for USDC's success. Unlike its rival USDT, which has found itself embroiled in repeated investigations, USDC has never been accused of any wrongdoing. 

Here you can find the report of the liquidity behind USDC emission: 
[https://www.centre.io/usdc-transparency?hsLang=en]

In fact, USDC has enjoyed this good reputation in the past by gaining market share over its rival, but, despite this, its circulating currency (in blue) has decreased faster than USDT (in green)  in recent weeks. 

![Immagine 2023-01-13 174446.png](https://res.cloudinary.com/dirwtwtdu/image/upload/v1673628334/Immagine_2023_01_13_174446_79ad1143c4.png)
USDT in green, USDC in blue, BUSD in yellow, and DAI in purple, aggregated stablecoins market cap in red and bitcoin price in black.

Today, USDC’s market cap is 44 billion and its ecosystem is growing very fast. In fact, it’s supported by the most important exchanges, De-Fi and Ce-Fi platforms, wallets, app and service providers. It’s available on Ethereum, Algorand, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche, Tron and many others. 


USDC: digital money for the digital age

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USDT is the stablecoin equivalent of a US dollar. Tether works to change the financial world through a modern and digital approach to money. Tether’s USDT tokens give holders the ability to store value and transact wih an asset that is less volatile than digital currencies and can be used across different blockchains, like Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, Bitcoin Cash’s Standard Ledger Protocol, and Solana. Converting from fiat to crypto or crypto to fiat involves friction and relatively high costs. USDT allows people to hold an asset with the same value as a US dollar without converting out of crypto into fiat.

Tether began offering the first US backed stablecoin, USDT in 2014, and has maintained market dominance. With 78 billion USDT in circulation, Tether’s USD equivalent token is the most widely adopted stablecoin. Tether also offers a Euro pegged stablecoin called EURT. CNHT and XAUT, pegged to Chinese Yuan and gold are also in development.

All Tether tokens are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves. Tether Holdings Limited is audited quarterly. The reserves are a mix of Treasury Bills, Cash & Bank Deposits, Money Market Funds and Commercial Paper.
You can see the details here: https://tether.to/en/transparency

At an institutional level, USDT has been important to the growth of the crypto sector. During recent bull markets, USDT played a fundamental role in moving liquidity from one exchange to another without creating exposure to volatility risk. It also helps at an individual level, particularly in bear markets. For example, if you want to sell one crypto asset, but you are not sure what you want to buy next, rather than converting to fiat, you can sell for USDT and reduce your transaction costs and avoid exchange limits. Before 2014, if you wanted to move assets between crypto and a stable USD-valued asset, you would have to convert your crypto to fiat. Now, when you want to take a risk-off position, you can trade your crypto assets for USDT and when you are ready to return to a risk-on position, you will find USDT is one of the most common trading pairs. You can also earn low-risk returns on your USDT in periods of uncertainty by lending them in staking pools.

Learn more about Stablecoins in our article series:
[What are stablecoins?](https://stablecomp.medium.com/what-are-stablecoins-c8569dffdc12)
[Stablecoins collateralized by fiat currency](https://stablecomp.medium.com/stablecoins-that-are-collateralized-with-fiat-currency-295b0d4495d3)
[Stablecoins collateralized by cryptocurrency](https://stablecomp.medium.com/stablecoins-collateralized-by-cryptocurrencies-925c3e7962a5)
[Stablecoins collateralized by commodities
](https://stablecomp.medium.com/stablecoins-collateralized-by-commodities-2c3ebc1a5767)[Algorithmic stablecoins](https://stablecomp.medium.com/algorithmic-stablecoins-757b2d01198a)

Learn more about Stablecomp and how it can help you earn high returns with low risk.
Check our homepage for more details and Follow our channels:

🌐 [Website](https://www.stablecomp.com/)|✈ [Telegram](https://t.me/stablecomp) | 🐤 [Twitter](https://twitter.com/Stablecomp_com)


Understanding USDT

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People sometimes search for security and stability when managing their assets. Some assets offer the possibility of appreciation, but they can be volatile, offering a risk of depreciation as well. Fiat currency of nations with relatively stable economies is often viewed as a “safe” asset. But throughout history, stable currencies have sometimes become unstable. Some people view the central banks that control currencies with quite a bit of skepticism. Even the most stable currencies, arguably, entail risks that are not, in the view of some people, priced in to asset costs and yields for “parking” those assets. So for people with this outlook, a stablecoin that is reliable worth one dollar or one Euro is not really that stable at all.

So what can people do to provide a stable hedge against a downturn if not even fiat assets from the most stable economies are reliable in their opinion? They could diversify into commodities. But commodities investments can be fraught and a bit of a hassle with high transaction fees. Fortunately some stablecoins offer a relatively simple solution to the conundrum.

Some stablecoins are backed by commodities. For instance, you can get stablecoins backed by gold. This is the most common form of commodity-backed stablecoin. To the extent that the value of gold in real terms is stable, this provides a safe haven with a secure future value. Whatever crazy things might happen in fiat currency — the value of real goods you can trade gold for is perhaps more important.

Each gold-backed stablecoin represents a specific amount of gold — for example, 1 token is worth one gram of gold. The physical gold that backs the tokens is often stored in the vault of a trusted third party. While commodity-backed stablecoins are not as popular as fiat-backed stablecoins, they provide a viable alternative for those looking to transact in tokens backed by real, tangible value via precious metals.

**Benefits**
• It is guaranteed by real assets: the holders of the stablecoin own something connected to a tangible and guaranteed asset with real value.

• Stability: The price of some commodities is relatively stable, and would represent a good underlying asset for a stablecoin.

Disadvantages
• Centralized: Third parties such as suppliers, custodians and the company itself are required to ensure the full functioning of the system. This entails risks.

Learn more about Stablecoins in our article series:
[What are stablecoins?](https://stablecomp.medium.com/what-are-stablecoins-c8569dffdc12)
[Stablecoins collateralized by fiat currency](https://stablecomp.medium.com/stablecoins-that-are-collateralized-with-fiat-currency-295b0d4495d3)
[Stablecoins collateralized by cryptocurrency](https://stablecomp.medium.com/stablecoins-collateralized-by-cryptocurrencies-925c3e7962a5)
[Stablecoins collateralized by commodities
](https://stablecomp.medium.com/stablecoins-collateralized-by-commodities-2c3ebc1a5767)[Algorithmic stablecoins](https://stablecomp.medium.com/algorithmic-stablecoins-757b2d01198a)

Learn more about Stablecomp and how it can help you earn high returns with low risk.
Check our homepage for more details and Follow our channels:

🌐 [Website](https://www.stablecomp.com/)|✈️ [Telegram](https://t.me/stablecomp) | 🐤 [Twitter](https://twitter.com/Stablecomp_com)


Stablecoins collateralized by commodities

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For a token to be fiat-backed, a company or central entity must manage fiat currency reserves and issue a corresponding amount of tokens in the crypto market. The company is the custodian of fiat reserves. Therefore, holders of these fiat-backed tokens are choosing to trust the central entity. Holders may seek to verify reliability by examining periodic audits, but ultimately the involvement of the central authority means the holder is involved in a relationship that involves trust.

**Benefits**
• Simplicity: The fiat-backed structure is easy to understand.

• Stability: Fiat currencies from countries with a strong and relatively stable economy are perhaps the most stable assets available. For instance, the USD is very stable so international business deals often use it as a “unit of account” — a way to measure and describe value that does not change a lot over time. Several popular stablecoins are backed with fiat USD.

**Disadvantages**
• Centralized: this structure is always highly centralized and therefore subject to various vulnerabilities and risks.

• Requires trust: the central entity must be trusted for the full functioning of the system, which goes against the principle of decentralization of cryptocurrencies. External audits are required to verify the credibility of the accounts.

• Regulatory Risk: Anything involving Fiat in the cryptocurrency market today would require greater supervision and regulation. For example, Tether continues to categorically reject any public audit, and the institutions responsible for issuing the dollar may soon rebel against this lack of transparency.

Stablecomp
Stablecoins are used to fund many activities in DeFi. People provide liquidity for DeFi activities by staking stablecoins in pools that yield interest.

Stablecomp is a utility token-powered platform for assessing risk in stablecoin staking pools. Eventually, Stablecomp may strive to support all Stablecoins to offer freedom of choice, a key component of true decentralization. In the near term, Stablecomp will support the most popular stablecoins.

Learn more about Stablecoins in our article series:
[What are stablecoins?](https://stablecomp.medium.com/what-are-stablecoins-c8569dffdc12)
[Stablecoins collateralized by fiat currency](https://stablecomp.medium.com/stablecoins-that-are-collateralized-with-fiat-currency-295b0d4495d3)
[Stablecoins collateralized by cryptocurrency](https://stablecomp.medium.com/stablecoins-collateralized-by-cryptocurrencies-925c3e7962a5)
[Stablecoins collateralized by commodities
](https://stablecomp.medium.com/stablecoins-collateralized-by-commodities-2c3ebc1a5767)[Algorithmic stablecoins](https://stablecomp.medium.com/algorithmic-stablecoins-757b2d01198a)

Learn more about Stablecomp and how it can help you earn high returns with low risk.
Check our homepage for more details and Follow our channels:

🌐 [Website](https://www.stablecomp.com/)|✈️ [Telegram](https://t.me/stablecomp) | 🐤 [Twitter](https://twitter.com/Stablecomp_com)
