Talking Stablecoin #2 —The importance of Stablecoins
At Talking Stablecoin #1, we talked about basic information of Stablecoin, including its definition, features and benefits. This time, we want to dive more into the importance and the mission of Stablecoin in Crypto world.
Where can you buy Stablecoin?
- Through CEX exchanges: All CEX exchanges support buying and selling Stablecoin through various methods such as using crypto assets or using funds in a bank card.
- Through DEX exchanges: There are DEX exchanges created specifically to support the exchange of Stablecoin with low slippage, such as Curve Finance, Ellipsis, or Mobius.
- Direct minting: Instead of buying Stablecoin, you can also mint them directly by using collateral. Projects that support this method include MakerDAO (DAI), Abracadabra Money (MIM), etc.
Why is Stablecoin important in crypto?
Most of us are uncomfortable with losses, which is exacerbated when crypto is highly volatile and speculative, with token prices potentially dropping by tens of percent within a week. For many people, this is difficult to accept.
For example, you trade and win a few orders and decide to cash out in BTC. About a week later, you cash out BTC to VND and find that the amount of VND you put in and withdrew is not different. How would you feel?
Stablecoin separates the high risk/high return characteristic of crypto from the frequent fluctuations of crypto assets, with the characteristic of “stability,” making Stablecoin a more suitable cryptocurrency for storage and as a means of exchanging value.
What problem does Stablecoin solve in Crypto?
Stablecoin has emerged to solve the biggest problem in the current Crypto market, which is volatility.
For traders or investors, they can transfer assets to Stablecoin to avoid the volatility of cryptocurrencies without necessarily having to convert to Fiat.
For shops and companies, it is difficult to accept payment in a Crypto with a 20–30% value volatility in a short period. This has made widespread acceptance of cryptocurrencies much more difficult.
Therefore, Stablecoin can be seen as an important bridge between the electronic market and the traditional financial market. The conversion from Fiat to cryptocurrency is much easier with the emergence of Stablecoin.
As Erik Voorhees, CEO of Shapeshift, has noted:
“Stablecoins are important in the same way that a bridge is important. You may not care much about the bridge, but without it, the beautiful land beyond is much harder to get to”.
DONG on its mission to solve problems of OTC Trading in Vietnam
In Vietnam, OTC trading on platforms like Binance requires the involvement of three parties (buyer, seller, and platform), which can be both time-consuming and frustrating. If the buyer or seller fails to send the correct amount of funds to your account for whatever reason, your fund pertaining to the transaction at hand may be frozen for hours, even when you are not the party at fault, until the platform intervenes, mediates, and resolves the issue.
With DONG, OTC trading can be more efficient and secure for all parties involved. With DONG, OTC trading can be more efficient and secure for all parties involved.
My Money Credit and third parties will provide liquidity for DONG and build trading apps that can be integrated into popular social media such as Telegram, Twitter, and Facebook. These apps allow users to connect their wallets and instantly swap USDC and USDT to DONG, and vice versa, in a trustless manner without the need for a middleman. Sufficient liquidity will be provided for these pairs to facilitate a smooth trading experience. Once users have enough DONG and want to cash out, they can transfer their DONG to My Money Credit, redeem VND, and send the money to their bank accounts. The fee for redeeming DONG to VND is always 1 MMC, regardless of the amount.
Conclusion
Stablecoin has become an important innovation in the cryptocurrency world, solving the issue of volatility and facilitating the integration of digital assets into the traditional financial system. In Vietnam, the DONG project is striving to enhance the efficiency and security of OTC trading by providing a trustless platform for instant swapping of stablecoins and a seamless conversion to fiat currency. With the support of My Money Credit and third-party liquidity providers, DONG has the potential to revolutionize the OTC trading landscape in Vietnam, offering a more convenient and reliable solution for cryptocurrency investors and traders.
Follow My Money Credit’s official channels for further information: