Collateralized vs. non-collateralized stablecoins

[Psycho]

Collateralized stablecoin companies are expected to actually hold the assets against which their coin is pegged (e.g., US dollar or gold). So they issue new units based on the value of their holdings. This model is the basis of most stablecoins. Prominent examples include USD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD), where each token is backed on a 1:1 ratio by money held in the bank accounts. So these companies only issue new stablecoin units when they receive the equivalent value in fiat currency.

Some stablecoins are pegged to other cryptocurrencies instead of fiat or commodities, and these are often referred to as crypto-collateralized stablecoins. The peg of these coins is maintained through over-collateralization and stability mechanisms. A prominent example is DAI, the stablecoin minted in the Maker DAO ecosystem.

Non-collateralized stablecoins, on the other hand, make use of algorithms to control the supply of tokens in order to keep the price fixed at a predetermined level. The goal of these coins is to maintain a stable value by algorithmically expanding and contracting its circulating supply in response to market behavior.




Sorce link:- https://www.google.com/amp/s/academy.binance.com/en/glossary/stablecoin%3famp=1

[Malam90]

Basically stablecoins are two types. They are-Colletaralized and Non-Collateralized stable coins. In my previous topic, i have stated clearly about the types of stable coins. There i have showed 3 types of stablecoins. Fiat backed, crypto backed that consists of collateralized and algorithmically stabilized stablecoins. Basically collateralized (fiat and crypto backed) is very popular and almost all stablecoins in crypto world are collateralized stablecoins which against there are holding assets in banks or wallets to maintain their 1:1 ratio.

[IyemRoker]

I am not familiar with the Collateral of each altcoins that has a stable coin price because the coin is also difficult to see as the original USD collateral.
I have never seen the real USD guaranteed by Tether for USDT and this is a big question.
Money with this great capitalist can be seen where the Tether market has spread throughout the world.

[Malam90]

I am not familiar with the Collateral of each altcoins that has a stable coin price because the coin is also difficult to see as the original USD collateral.
I have never seen the real USD guaranteed by Tether for USDT and this is a big question.
Money with this great capitalist can be seen where the Tether market has spread throughout the world.

Every stable coin claims that they have reserved back up funds for guarantee of their tokens to maintain 1:1 ratio reserve. No auditory report still published as a document for reality of actual reserved. USDT claimed they have reserved but can't show their reserve in any auditory report. This is concern but as crypto is decentralized, it has no regulatory authority.

[jonathancool220]

-

It is true that the USDT is also unable to provide valid documents for their reserve funds.
If only Dev just let USDT without a definite development, then until this moment USDT will not be this big.

But it is also true that USDT is unable to provide real documents for proof of their reserve funds and this is what worries me for the future of USDT.

[Malam90]

-

It is true that the USDT is also unable to provide valid documents for their reserve funds.
If only Dev just let USDT without a definite development, then until this moment USDT will not be this big.

But it is also true that USDT is unable to provide real documents for proof of their reserve funds and this is what worries me for the future of USDT.

USDT is still unable to show their evidence of backed assets in banks or other places against their circulating supply of USDT in the market but i saw an a newspaper claimed the team of USDT proved their evidence. We need an auditory report to justify its real situations but as it is the top stablecoins, investors have fait on it. That's why its performance graph is uptrend gradually.

[Carbitcoin]

Tehter previously stated that about 20 percent of USDT is backed by the dollar, but the rhetoric of company representatives has already changed and according to new data, each coin is backed by “reserves, which include traditional currency and cash equivalents, as well as other assets and forthcoming proceeds from loans that were provided to third parties ”.

[Malam90]

Tehter previously stated that about 20 percent of USDT is backed by the dollar, but the rhetoric of company representatives has already changed and according to new data, each coin is backed by “reserves, which include traditional currency and cash equivalents, as well as other assets and forthcoming proceeds from loans that were provided to third parties ”.

I have also confusion about whether they have really backed by real assets or not. I think they have reserves which may be cryptocurrency, cash and USD totally. So any stable coin which claims as stable coin should show its proof whether it has real assets backed or cryptocurrency backed.

[saprakib]

I am not familiar with the Collateral of each altcoins that has a stable coin price because the coin is also difficult to see as the original USD collateral.
I have never seen the real USD guaranteed by Tether for USDT and this is a big question.
Money with this great capitalist can be seen where the Tether market has spread throughout the world.

Every stable coin claims that they have reserved back up funds for guarantee of their tokens to maintain 1:1 ratio reserve. No auditory report still published as a document for reality of actual reserved. USDT claimed they have reserved but can't show their reserve in any auditory report. This is concern but as crypto is decentralized, it has no regulatory authority.

It could be more secured that if we can see any authority and a beck up fund to show it publicly. It made more clear on concern. However it still there are no stable coin show up like that.   

[Malam90]

I am not familiar with the Collateral of each altcoins that has a stable coin price because the coin is also difficult to see as the original USD collateral.
I have never seen the real USD guaranteed by Tether for USDT and this is a big question.
Money with this great capitalist can be seen where the Tether market has spread throughout the world.

Every stable coin claims that they have reserved back up funds for guarantee of their tokens to maintain 1:1 ratio reserve. No auditory report still published as a document for reality of actual reserved. USDT claimed they have reserved but can't show their reserve in any auditory report. This is concern but as crypto is decentralized, it has no regulatory authority.

It could be more secured that if we can see any authority and a beck up fund to show it publicly. It made more clear on concern. However it still there are no stable coin show up like that.

Every stable coin needs to publish its own auditory report by SEC or other authority to prove its claim as stable coin whether true or wrong.

[damsix]

The best method is stable, collateralized and genuine coins such as USD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD).
The reason is that their assets are fully supported by their real fiat money and that is what everyone should do in creating stable coins.
Actually DAI is also good but the one that is the collateral is DAO Maker and it's the same as cryptocurrency being opanged to cryptocurrency.

[kulkhan]

There are Near About 200 Stable Coin In Cryptocurrency Market. All Are Divided into Two Parts One is Collateralized and another is non-collateralized. Collateralized is very popular stable coins in crypto world are collateralized stablecoins which against there are holding assets in wallets to maintain their ratio.