SECRET to make algorithmic stablecoins a SUCCESS are intraday interest rates Governments and regulators are trying to ban development of algorithmic stablecoins. Algorithmic stablecoins got a lot of hate after the Terra/LUNA collapse because UST was marketed as an algorithmic stablecoin but it was a scam. Algorithmic stablecoins use algorithmic methods to balance supply & demand to keep the peg to fiat currency. I think that the secret to make algorithmic stablecoins a success is the introduction of intraday interest rates. Protocol managing algorithmic stablecoins can change intraday interest rates - 1 second, 1 minute or 1 hour interest rates - to attract liquidity in order to maintain the peg. Market makers, liquidity providers, prop traders and hedge funds will be highly impacted by short term interest rates and they can bring liquidity to stabilize the algorithmic stablecoin and maintain the peg. Central banks do that today when they have a currency crisis but they can only use daily interest to maintain stability of fiat currency. Changing daily interest rates can be highly destabilizing for the economy because financial markets, debt and morgages are priced of daily interest rates. I’m super bullish on developments and research of algorithmic stablecoins but we have cracked it yet! #algorithmic #stablecoins #ust #usdt #centralbank #interestrates Follow 👉 Anton Golub & share ♻️ with your network
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SECRET to make algorithmic stablecoins a SUCCESS are intraday interest rates Governments and regulators are trying to ban development of algorithmic stablecoins. Algorithmic stablecoins got a lot of hate after the Terra/LUNA collapse because UST was marketed as an algorithmic stablecoin but it was a scam. Algorithmic stablecoins use algorithmic methods to balance supply & demand to keep the peg to fiat currency. I think that the secret to make algorithmic stablecoins a success is the introduction of intraday interest rates. Protocol managing algorithmic stablecoins can change intraday interest rates - 1 second, 1 minute or 1 hour interest rates - to attract liquidity in order to maintain the peg. Market makers, liquidity providers, prop traders and hedge funds will be highly impacted by short term interest rates and they can bring liquidity to stabilize the algorithmic stablecoin and maintain the peg. Central banks do that today when they have a currency crisis but they can only use daily interest to maintain stability of fiat currency. Changing daily interest rates can be highly destabilizing for the economy because financial markets, debt and morgages are priced of daily interest rates. I’m super bullish on developments and research of algorithmic stablecoins but we have cracked it yet! #algorithmic #stablecoins #ust #usdt #centralbank #interestrates Follow 👉 Anton Golub & share ♻️ with your network
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to make algorithmic stablecoins a SUCCESS are intraday interest rates Governments and regulators are trying to ban development of algorithmic stablecoins. Algorithmic stablecoins got a lot of hate after the Terra/LUNA collapse because UST was marketed as an algorithmic stablecoin but it was a scam. Algorithmic stablecoins use algorithmic methods to balance supply & demand to keep the peg to fiat currency. I think that the secret to make algorithmic stablecoins a success is the introduction of intraday interest rates. Protocol managing algorithmic stablecoins can change intraday interest rates - 1 second, 1 minute or 1 hour interest rates - to attract liquidity in order to maintain the peg. Market makers, liquidity providers, prop traders and hedge funds will be highly impacted by short term interest rates and they can bring liquidity to stabilize the algorithmic stablecoin and maintain the peg. Central banks do that today when they have a currency crisis but they can only use daily interest to maintain stability of fiat currency. Changing daily interest rates can be highly destabilizing for the economy because financial markets, debt and morgages are priced of daily interest rates. I’m super bullish on developments and research of algorithmic stablecoins but we have cracked it yet! #algorithmic #stablecoins #ust #usdt #centralbank #interestrates Follow 👉 Anton Golub & share ♻️ with your network
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Crypto Derivatives Analytics Report by Block Scholes👇 Bullish sentiment consolidates ➡️ Positive funding rates and futures yields and an inverted term structure ➡️ Vol smiles skewed towards calls across the curve ➡️ US election continues to impact market dynamics Deribit. Always Open.
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Dealing with Price Slippage Risks in Decentralized Exchanges Price slippage poses a significant challenge for traders in decentralized exchanges (DEXs), where liquidity is often fragmented and market conditions volatile. Understanding and effectively managing price slippage risks is crucial for maintaining market efficiency and protecting traders from unexpected losses. In this article, we explore the causes and impacts of price slippage in DEXs, as... Dealing with Price Slippage Risks in Decentralized Exchanges #DecentralizedExchanges #PriceSlippage #Risks
Dealing with Price Slippage Risks in Decentralized Exchanges - CoinXposure: Crypto News, Market Analysis & Startup Reports
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Why Every Trader Should Consider an EA Forex Robot? "In the fast-paced arena of foreign exchange (forex) trading, traders search relentlessly for an “edge” to amplify profits. While no “holy grail” system exists, mounting evidence suggests Expert Advisors (EAs) can provide traders a significant performance boost. As automated trading systems, EAs enable traders to codify profitable strategies into constantly vigilant algorithms." https://lnkd.in/ezD8V5aT #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews
Why Every Trader Should Consider an EA Forex Robot?
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I often get asked why USD stablecoins are so dominant. Two reasons: huge unmet demand from emerging markets for dollars and, the even more important one, stablecoins today are used mainly as a transfer medium and trading reserve currency. When every bip matters, you converge on the most commonly accepted, most liquid product with the largest ecosystem surrounding it. We at Iron are building a global payments platform and are open to any stablecoin and will support a deep selection of them across chains. But the reality is that payments is a business of massive scale and thin margin where “every bip matters”. Hence institutions will naturally converge to the most liquid and trusted fiat <> stable pairs. Today those are against USDC and USDT. Same goes for the world of trading. With average market maker margins in the 3-5bps range, you can’t afford to pay high spreads on illiquid stable pairs. Back to payments. An example: I want to move money from Europe to Latam. You will likely pick USDC/T as a transfer medium because of widest recipient acceptance and deepest liquidity on both sender and receiver side. We at Iron are building a global network of locally specialized stablecoin payment companies and they ALL request dollar stables, simply due to liquidity. Whatever the currency corridor, USD is the transfer currency. This is mirroring the TradFi world. The US is a hub to move money around the world as it has the most liquid, most globally in demand currency, the USD. According to SWIFT, the USD accounts for over 80 percent of global trade finance, likely because much of commodity trade continues to be invoiced and settled in dollars. I do believe in a world of a thousand stablecoins in the long run, but for stablecoins to act as global financial infrastructure, there will be a natural convergence towards the highly liquid instruments, including strong regional winners. Are you building at the intersection of payments and stables and need an institutional-grade partner for global on/offramp, stablecoin payments, wallet infra and more? Ping me or check out https://iron.xyz
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Today on #HorasisInsights: A look into two historical currency crises, and why these matter for the future of tokenized assets by Eddie Cullen, CEO, Crescite, United States The modern concept of trading pairs between #digitalassets to create liquidity for tokens doesn’t make logical sense. There are several underlying reasons, such as the lack of intrinsic value while pairing such assets to back liquidity relies on perceived value which is volatile and unpredictable. The dependency on currency pairs is a risky proposition because monetary policy cannot move fast enough sometimes. The interconnected risk of pairing two digital assets ties their fates together. If one asset experiences a downtown, then it can quickly drag down its paired assets. There can be illiquidity spirals where assets cannot be sold at reasonable prices. Trading pairs can exacerbate this problem if both assets face selloffs. Then bring in arbitrage complexity, while even though arbitrage between trading pairs can support liquidity, the fast-paced nature of these opportunities requires sophistication, limiting participation to a small segment of traders. The token market lacks standardization of valuation models, security, and regulatory compliance. This lack of standardization can make the concept of using trading pairs to back liquidity challenging and less logical from an economic perspective. The innovation of tokenizing real-world assets will evolve the market toward sustainable liquidity with token pairing. The tokenization of real-world assets provides real liquidity stability without volatility. Token pairings will become extinct as digital assets evolve into what they were meant to be used for and that’s the #tokenization of real-world assets. #horasis #Inspiringourfuture https://lnkd.in/eFGXXG5n
A look into two historical currency crises, and why these matter for the future of tokenized assets - Horasis
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🚀 Stablecoins & CBDCs: November 2024 Milestones per the very interesting CCData report linked below:🚀 November was a standout month for stablecoins and central bank digital currencies (#CBDCs), with record-breaking market capitalization and trading volumes, alongside significant global developments. Here's a closer look as a summary out of the report which gives great insights with a lot of illustrative data. Stablecoins Overview: Market Cap & Volumes 📈 Total stablecoin market cap surged 9.94% to $190bn, marking its highest level since April 2022. 💹 Trading volumes on centralized exchanges rose 77.5% to $1.81tn, approaching yearly highs as institutional confidence grew. 🥇 USDT dominated, accounting for 82.7% of trading volumes, followed by FDUSD (9.01%) and USDC (8.09%). Stablecoins Overview: Top 10 Stablecoins 🌟 USDT market cap increased 10.5% to $133bn, marking its fifteenth consecutive monthly rise. 📊 USDC rose 12.1% to $38.9bn, its highest since February 2023. ⬇️ FDUSD and Sky Dollar (USDS) saw declines, with market caps dropping 14.9% and 8.34%, respectively. CBDC Overview: Key CBDC advancements included: 1️⃣ Huawei integrating the digital yuan into its HarmonyOS NEXT, potentially reaching 1 billion users. 2️⃣ Pakistan moving to recognize cryptocurrencies and CBDCs as legal tender. 3️⃣ Bank of Korea initiating trials for tokenized deposits and CBDCs. 4️⃣ Bank for International Settlements (BIS) revealed that Project mBridge has reached its minimum viable product stage. Euro Stablecoins: Market Cap & Trading Volumes 📉 Euro stablecoin market cap dropped 11.4% to $256mn, led by Circle’s EURC, which holds a 34.2% market share. 📈 Euro stablecoin trading volumes rose 52.9% to $657mn, with MiCA-compliant stablecoin EURI leading at 49.4% of volume. Ethena Labs’ USDe: Market Cap & Volumes 🔥 USDe’s market cap soared 42.2% to $3.86bn, hitting a new all-time high. 📊 Monthly trading volume rose 57.2% to $493mn, driven by ecosystem interest and integration with exchanges. Usual Protocol’s USD0: Market Capitalisation 🌟 USD0 saw its market cap rise 16.9% to $432mn, its fifth consecutive monthly increase. 🔗 The decentralized, fiat-backed stablecoin gained traction after its governance token USUAL was listed on Binance Launchpool. 📋 Summary: November showcased the growing maturity of the stablecoin and CBDC sectors. From USDT’s dominance and Ethena Labs’ record-breaking USDe performance to significant CBDC advancements globally, digital currencies are reshaping the financial landscape. The rise in market capitalization and trading volumes highlights strong institutional trust and sets the stage for future growth. Regulatory clarity and innovation will be key to maintaining momentum.🌍 https://lnkd.in/dRKvcbqx #Stablecoins #CBDC #Crypto #Innovation #DeFi #Blockchain #DigitalFinance
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🌍💳 Introducing DT (Digital Token): A Secure Universal Digital Currency for the World 💳🌍 In today’s rapidly evolving financial landscape, currency fragmentation and FOREX complexities are causing challenges to international trade, growth, and economic stability. The need for a neutral, inclusive, and universal digital currency has never been more urgent. We are excited to introduce DT (Digital Token)—our answer to a seamless, secure, and unified global financial future. Why DT? 1. Universal & Inclusive: Designed to serve citizens, businesses, and governments globally. 2. Secure & Transparent: Advanced technology ensures that every transaction is safe and reliable. 3. Bridging the Gap: DT enables the smooth convergence of local economies with the global marketplace. 4. Resilient Amidst Currency Fragmentation: As countries explore alternatives to the USD, DT offers a neutral platform to simplify FOREX operations and avoid geopolitical conflicts. 🔎 The Backdrop: The current landscape is becoming increasingly fragmented, with countries moving away from the USD and creating their own currencies INN Lowy Institute This adds layers of complexity to the FOREX market, hampering trade, and stifling economic growth. DT is here to reduce these barriers, offering a universal solution that aligns with national interests and promotes financial unity without replacing local currencies. 🛠️ Shaped by Experience: With nearly 20 years in the corporate world, our journey has been one of extensive research, learning, and refinement. These insights have crystallized into a more cohesive world vision—the 6GIR-BIOME World Vision—a bold and inclusive plan for the future. 🚀 2024: A Turning Point This year marks a watershed moment, and with our unstoppable partnership, we are introducing a future defined by sustainable finance, advanced infrastructure, communication, education, and entertainment. 📣 Join the movement—Embrace the future with DT (Digital Token)! #DigitalCurrency #GlobalEconomy #UniversalCurrency #6GIR #BIOME #DT #FutureOfFinance #Innovation #SustainableGrowth
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November set new records for stablecoins and marked pivotal advances in CBDCs globally. From surging market caps to innovative integrations, the digital finance landscape is evolving fast as per the comprehensive report by CCData: #web3 #digitalassets
🚀 Stablecoins & CBDCs: November 2024 Milestones per the very interesting CCData report linked below:🚀 November was a standout month for stablecoins and central bank digital currencies (#CBDCs), with record-breaking market capitalization and trading volumes, alongside significant global developments. Here's a closer look as a summary out of the report which gives great insights with a lot of illustrative data. Stablecoins Overview: Market Cap & Volumes 📈 Total stablecoin market cap surged 9.94% to $190bn, marking its highest level since April 2022. 💹 Trading volumes on centralized exchanges rose 77.5% to $1.81tn, approaching yearly highs as institutional confidence grew. 🥇 USDT dominated, accounting for 82.7% of trading volumes, followed by FDUSD (9.01%) and USDC (8.09%). Stablecoins Overview: Top 10 Stablecoins 🌟 USDT market cap increased 10.5% to $133bn, marking its fifteenth consecutive monthly rise. 📊 USDC rose 12.1% to $38.9bn, its highest since February 2023. ⬇️ FDUSD and Sky Dollar (USDS) saw declines, with market caps dropping 14.9% and 8.34%, respectively. CBDC Overview: Key CBDC advancements included: 1️⃣ Huawei integrating the digital yuan into its HarmonyOS NEXT, potentially reaching 1 billion users. 2️⃣ Pakistan moving to recognize cryptocurrencies and CBDCs as legal tender. 3️⃣ Bank of Korea initiating trials for tokenized deposits and CBDCs. 4️⃣ Bank for International Settlements (BIS) revealed that Project mBridge has reached its minimum viable product stage. Euro Stablecoins: Market Cap & Trading Volumes 📉 Euro stablecoin market cap dropped 11.4% to $256mn, led by Circle’s EURC, which holds a 34.2% market share. 📈 Euro stablecoin trading volumes rose 52.9% to $657mn, with MiCA-compliant stablecoin EURI leading at 49.4% of volume. Ethena Labs’ USDe: Market Cap & Volumes 🔥 USDe’s market cap soared 42.2% to $3.86bn, hitting a new all-time high. 📊 Monthly trading volume rose 57.2% to $493mn, driven by ecosystem interest and integration with exchanges. Usual Protocol’s USD0: Market Capitalisation 🌟 USD0 saw its market cap rise 16.9% to $432mn, its fifth consecutive monthly increase. 🔗 The decentralized, fiat-backed stablecoin gained traction after its governance token USUAL was listed on Binance Launchpool. 📋 Summary: November showcased the growing maturity of the stablecoin and CBDC sectors. From USDT’s dominance and Ethena Labs’ record-breaking USDe performance to significant CBDC advancements globally, digital currencies are reshaping the financial landscape. The rise in market capitalization and trading volumes highlights strong institutional trust and sets the stage for future growth. Regulatory clarity and innovation will be key to maintaining momentum.🌍 https://lnkd.in/dRKvcbqx #Stablecoins #CBDC #Crypto #Innovation #DeFi #Blockchain #DigitalFinance
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Former - Group Head of Market & Liquidity Risk in DBS Bank (PhD 1990); Founder and Director, N-Category Advisers
8moAnton Golub that’s exactly why at some point there will be an intraday repo curve to the end of the day. No reason to stay flat unless everyone can tab the central bank discount window or intraday repo at the same rate no matter how long. And everyone knows the critical time stamp round the GMT clock for payment flows, algo stablecoins included.