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First Cardano-Based Stablecoins Are Already Available via DeFi Platforms: Here's How

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Fri, 04/29/2022 - 14:53
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Arman Shirinyan
While Cardano community awaits stable solutions on the network, you can already access them via bridges
First Cardano-Based Stablecoins Are Already Available via DeFi Platforms: Here's How
Cover image via stock.adobe.com

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Cardano-based stablecoins were long-awaited by a community interested in the ecosystem since this type of asset is the cornerstone of any blockchain-based ecosystem that acts as a bridge between fiat and digital assets.

As the crypto ecosystem builder co-founder Sebastien Guillemot noted, recently released DeFi platform Wingriders is offering $7 million USD-based stablecoins. According to the developer, anyone can wrap their USDC/USDT in Cardano by using only two bridges: Nomadxyz and Milkomeda. Both projects that allow usage of stablecoins on Cardano are open to any user.

Some Cardano enthusiasts expressed their concerns with using bridges as they bring more risks during transfers and are less user-friendly. But Guilemot shed some light on algorithmic stablecoins widely used by crypto enthusiasts as they bring their own risks, as well depending on the change mechanism.

Algorithmic stablecoins are one of the most common types of assets in the cryptocurrency market as it offers easy-to-use solutions accepted by numerous centralized and decentralized cryptocurrency exchanges. But before using each algorithm, it is better to become educated on the type of mechanism used by it as a wrong configuration in the coin's code may bring various risks to its users and even cause a decoupling.

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Back in the summer of 2021, users were actively criticizing the biggest stablecoin on the market, Tether, which is being used on three chains: Tron, Ethereum and Omni. The main concern of crypto users was the fact that it was not clear if Tether held any illegal papers to back their stable asset.

Tether, USDC and UST remain one of the biggest assets on the cryptocurrency market with $155 billion in combined capitalization.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.