Circle(USDC) – on Near ?
Circle’s USDC, tailored for NEAR, is set to become the official USD variant within our ecosystem, with an expected rollout scheduled for September.
In the forthcoming period, the inherent SDK’s liquidity will burgeon, potentially supplanting the bridged USDC, known as USDC.e, which currently circulates in our ecosystem. Presently, USDC.e relies on locked USDC within a smart contract on the Ethereum network for security.
Right after the native SDK’s launch, NEAR will unveil comprehensive details about ecosystem applications designed to facilitate the seamless exchange of bridged USDC.e for the native USDC.
The identifier for the Circle-issued native SDK token stands as follows: 17208628f84f5d6ad33f0da3bbbeb27ffcb398eac501a31bd6ad2011e36133a1.
In tandem with ecosystem applications, NEAR has strategic plans for orchestrating a fluid transition of liquidity from USD.e to USD. Importantly, the functionality of NEAR’s Rainbow Bridge will remain unchanged, continuing to operate smoothly as before.
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Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to a specific asset like the US dollar.
Stablecoins achieve stability through collateralization, algorithmic mechanisms, or a combination of both.
Stablecoins can be categorized as centralized or decentralized, and some are over-collateralized with assets like BTC, ETH, or other cryptocurrencies.
The four largest stablecoins are USDT, USDC, BUSD, and DAI.
USDT is issued by Tether Limited in a 1:1 proportion to fiat dollars deposited by users.
USDT is backed by a mix of assets, including cash, US Treasury bills, precious metals, Bitcoin, and more.
Yes, Tether Limited can freeze USDT accounts for various reasons, including legal requirements and security concerns.
USDC is issued by Circle in collaboration with Coinbase and is backed by cash and short-term US Treasury bonds.
USDC lost its peg briefly when Circle announced holding $3.3 billion in reserves with the Silicon Valley Bank.
BUSD is issued by Paxos and Binance, primarily on the Ethereum blockchain as an ERC-20 token.
Binance stopped supporting USDC, USDP, and TUSD stablecoins, converting balances to BUSD.
DAI carries risks related to its over-collateralization model, including liquidation if collateral falls below required levels.
Algorithmic stablecoins rely on specific mechanisms to mint or burn tokens based on market conditions.
Stablecoins can face regulatory actions if they violate securities laws or other regulations.
Companies use tactics like FUD campaigns, media manipulation, and regulatory allegations to sway users and undermine competitors.
Stablecoin issuers profit from short-term investments of reserve funds and by providing redemption services with fees.
The best stablecoin depends on your specific needs. USDT, USDC, BUSD, and DAI are popular choices.
Yes, diversifying your stablecoin holdings can help reduce risk in your cryptocurrency portfolio.
Stablecoins are generally considered safe for preserving capital and conducting crypto transactions.
Consider factors like stability, issuer reputation, regulatory compliance, and use case to choose the right stablecoin.
Centralized organizations like Tether Limited and Circle have control over stablecoin issuance and infrastructure.
Stablecoin issuers can freeze accounts to comply with legal requirements and protect the stability of their stablecoin.
Stablecoins aim to maintain a stable value, making them suitable for transactions and capital preservation, unlike the price volatility of traditional cryptocurrencies.
Risks include counterparty risk, regulatory risk, market risk, liquidity risk, and technological risk.
Algorithmic stablecoins face challenges due to past incidents and regulatory concerns, but their future depends on regulatory decisions and market acceptance.
