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Binance Ends Support for BUSD Stablecoin: What It Means for Users and the Future of Stablecoins

Binance, one of the largest cryptocurrency exchanges in the world, has made the decision to end support for its Binance USD (BUSD) stablecoin. This move comes after Paxos, the company responsible for minting new BUSD coins, announced that it would be halting its operations. The transition is set to take place on December 15th, and it will have significant implications for users of the BUSD stablecoin. Automatic Conversion to First Digital USD Starting on December 31st, many users' BUSD balances on Binance will be automatically converted into First Digital USD. This conversion will take place seamlessly, and users will not be required to take any action. The transition is designed to ensure a smooth and uninterrupted experience for BUSD users. Implications for BUSD Users While the automatic conversion should minimize any disruption for BUSD users, it is important for them to be aware of the implications of this change. Once their BUSD balances are converted into First Digital US

Protecting Against USDC Depegging: Etherisc Launches Decentralized Insurance Protocol for Stablecoins

As an Ethereum expert, I am always excited to see new developments in the world of decentralized finance (DeFi) and cryptocurrency. Recently, Etherisc, an open-source, decentralized insurance protocol, launched a new product that offers insurance against the depegging of USDC, a stablecoin pegged to the US dollar. This is a significant step forward for DeFi, as it offers users a new level of protection against the volatility and risk that can be inherent in the world of cryptocurrency.

It's important to note that Etherisc is not a licensed insurance company, but rather a decentralized protocol that allows for the creation and management of insurance products on the blockchain. This means that the USDC depeg insurance product is created and managed by a decentralized community, rather than a centralized entity. This decentralized approach is a key feature of DeFi, as it allows for greater transparency, security, and accessibility for users.

So, how does the USDC depeg insurance product work? Here are the key details:

  • The product offers coverage against the depegging of USDC, which means that if the stablecoin's value deviates from the US dollar by a certain percentage, users will receive a payout.
  • The coverage is provided by a decentralized pool of capital, similar to how other DeFi protocols like Aave and Compound operate.
  • Users can purchase coverage by staking their own cryptocurrency as collateral. This collateral is used to back the insurance product and ensure that there are sufficient funds to pay out claims.
  • The price of coverage is determined by the market, based on the supply and demand of the insurance product. This means that the price can fluctuate over time, depending on market conditions.
  • If the USDC depegs and a claim is made, the payout is distributed to users based on their stake in the insurance pool. The payout is made in ETH, the native cryptocurrency of the Ethereum blockchain.

Overall, the USDC depeg insurance product from Etherisc is an exciting development for DeFi and cryptocurrency. It offers users a new level of protection against the risks and volatility of the market, while also leveraging the benefits of decentralization and blockchain technology. As DeFi continues to grow and evolve, I expect to see more innovative products like this emerge, further expanding the possibilities of what is possible in the world of finance.


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