Cryptocurrencies have yet to reach mainstream adoption, but one part of the market that has seen substantial growth is stablecoins. Stablecoins have become popular in the digital-currency industry because they don’t have the wild volatility associated with other crypto assets such as bitcoin. Stablecoin prices are often pegged at a one-to-one ratio to a stable asset such as the U.S. dollar, which is held in reserve as collateral. That means a buyer who pays $1 for a stablecoin usually can redeem it for $1 later on. ...
Maker ##bank has developed its credit token to offer cryptocurrency lending , using ether as collateral to secure DAI tokens . The token allows individuals to trade on the margins , buying more DAI with ether . Pro Venture Capital analysts have reviewed the loans and analysts say the system could be expanded to include personal and business lending without satisfying the demands of traditional banking . Maker DAO ’s currency is a stablecoin , assets which have become an important source of emerging market liquidity and which allow traders to use as a place for funds to be held during crypto volatility .