I’m pretty sure everyone is aware of the whole situation in Canada, with the government threatening to freeze civilian bank accounts and therefore you have certain people saying this is free BTC marketing or “this is why crypto exists”. It’s almost like people forget that USDT and USDC also can freeze your wallets which thus makes them no better.
USDT and USDC are stablecoins that should not be used if you value the principles of cryptocurrency. Often, I see people on this sub bashing others for keeping their funds on centralised exchanges like Binance, Coinbase etc. A common phrase I see is, “Not your keys, not your coins” and of course, I understand that storing your assets with any kind of third party does not guarantee your ownership. However, it is hypocritical in a sense, because these same people hold their assets in USDT and USDC which are centralised stablecoins that can blacklist certain wallets and freeze your funds!
UST is the most trusted “decentralised” stablecoin that you should be using. I hear many people say they prefer Dai but let me list some reasons as to why I prefer UST.
Dai is backed by over-collateralized central stablecoins including USDC, thus throwing the whole ‘decentralised’ narrative out the window. Furthermore, Dai is not scalable and will always be limited by scalability due to the fact for every $1 in existence there needs to be >$1 locked. This is the fundamental limitation of all commodity-backed currencies, they cannot expand to satisfy real market demand for them.
On the other hand, UST is not backed by US Dollars, rather it is an algorithmic stablecoin that uses Terra’s reserve asset LUNA to help maintain its peg. In other words, if you want to mint one TerraUSD, only $1 worth of Terra’s LUNA token is burned out of the system. Consequently, this addresses the scalability issues of DAI, as Terra stablecoins can expand rapidly and without bounds to meet the needs of the economy. If there is a lot of demand for dollars, more stablecoins can be minted, if not they are burned to meet demand.
DAI and UST are the new stablecoin generation
UST is not the “most trusted” stable coin.
Not to hate on LUNA, but it is LUNAcy to suggest that UST is safer or less centralized than DAI. First of all I prefer overcollaterization to 1:1 peg any day of the week when it comes to the notoriously stable world of defi.
And yes you can collateralize for DAI with USDC but also MKR, ETH, and others. With UST it’s LUNA or bust, and I’m sorry, but I’ll take the liquidity of the far more decentralized ETH ecosystem than that of a relative newcomer.
This is pure UST shillery and nothing more. Look at the OP’s username
I use ADA as the best stable coin /s (kinda)
Cash is still reliable at this stage!
TBH I am not even able to get rid of USDT, forget about USDC. Most trading pairs at exchanges are only with USDT.
The whole terra thing just looks like a massive scam imo and I am staying very far away from it. You can’t just burn supply and lock in value at whatever the current market rate is because there is no actual money being transferred. This kind of logic is equal to the people that believe everyone could have sold their dogecoin for 69 cent without the market collapsing.
OK this is all interesting stuff but does it matter if my money is momentarily in USDC before it is turned into bitcoin Ethereum etc?
I dont get it everyone know that the best stablecoin is XLM…
USDC too now? I thought that one was alright
UST is the obvious choice.
I just read George Washington used Tether.
You know what I’m gonna start using usdt and usdc even harder! /s
UST FTW
Go UST, go Luna!
So don’t use “XYZ” but use “ZYX” because it’s what I do! Is that about right?
Or should I just do the opposite? I can never tell if it’s Do as I do or Opposite week!
Ty for the info though.
Bullish on UST adoption!
Anything but fiat 😭
Inflation of USDC,USDT and other USD stable coins are very high.
UST for the win.
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Forgot about the blocklists, great post
What doesn’t make sense is if you burn all the supply of LUNA, no more UST can be produced? This means that either 1. This wont work, or 2. LUNA supply and UST supply is unlimited which essentially is permission to print infinite funds.
There should be a stable coin backed by overcollaterized ZEC, DASH, XMR and XVG.
It kinda looks like the only way to hold anything stable and private.
Bitcoin is my stable coin, it drives the entire market. I know every exchange wants it and even though it fluctuates sometimes, in the long run I know its gonna go up
I am watching APTY closely. Backed by Gold and have a sister company that recycles old military equipment, and more to recover gold to back their cryptocurrency.
Use BUSD, and u will be saved.
Ignorant post. No one can freeze stable coin tokens like USDC native to the Ethereum blockchain
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Use FRAX. It’s fractionally backed and has a long track record of holding its peg. It adjusts what % backed it is based on what the market and has FXS as a seigniorage token. Deep liquidity means it will continue to keep its peg. Also it’s decentralized and actively moving away from USDC. There’s ~2.5 billion in circulation so it’s not just an up and coming stable.
They can’t freeze jack shit. All they can do is block wallet addresses from trading with complying brokerages. At worst you just send your crypto to kucoin, swap it, send it to fresh wallet.
I prefer UST