What is a stablecoin & how does it work?

The purpose of a stablecoin is to provide an exchangeable virtual asset that maintains a relatively stable value commensurate to the value of the underlying currency, commodity or asset. Some of the more well know Stablecoins include “USD Tether” and “USD Coin”, both of which, as their names suggest, have their value pegged to the US Dollar.

Why did Acala's stablecoin drop 99%?

Polkadot-based decentralized finance (DeFi) platform Acala’s native stablecoin, aUSD, depegged on Sunday, plummeting 99% after hackers exploited a bug in a newly deployed liquidity pool to mint 1.28 billion tokens. Acala developers said the bug was caused by a misconfiguration of the iBTC/aUSD liquidity pool shortly after it went live on Sunday.

Are stablecoins a virtual asset?

(a) Stablecoins as Virtual Assets: Given the distinctly broad definition of a virtual asset under the CJA 2010, it is very likely that any stablecoin, regardless of collateralisation method, would constitute a virtual asset.

What are the best stablecoins?

Top stablecoins in use include Tether (USDT), USD Coin (USDC), Binance (BUSD), Dai (DAI), and True USD (TUSD). In the crypto economy, where transactions occur on a decentralized blockchain, digitized fiat cash—which is not a decentralized asset—may not be recognizable within the network.