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Algorithmic stablecoins need payments adoption to succeed, Goldman argues

For algorithmic stablecoins to have a long-term future they’ll need to find wider adoption for payments in the real economy, according to analysts at Goldman Sachs.  “Stablecoins have limited use as a payments medium at this time. If that real-world use case were to grow over time, it could create a more stable demand base for these assets,” the investment bank wrote in a research report dated Monday. “Hypothetically, an algorithmic stablecoin could survive in the long-run, if it were …

Terra Dapp Expo canceled following chaotic week for Terra network

The Terra Dapp Expo, slated for June 9 and 10 in Austin, Texas, has been canceled, according to the expo’s official Twitter feed. “We have been monitoring the community responses to the idea of TDX continuing, and after careful deliberation we have sadly decided to cancel the event. The decision was not made lightly and is crushing news for everyone involved,” the expo organizers said on Twitter. Over the past week, the linked meltdown of the algorithmic stablecoin UST and …

Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard

Luna Foundation Guard (LFG), a non-profit organization formed to support the growth of the Terra ecosystem, has yet to answer a crucial question about its bitcoin reserves after Terra’s collapse. LFG accumulated a total of 70,736 bitcoins (worth over $2 billion) as “forex reserve” for Terra’s algorithmic stablecoin UST, which has recently severely depegged and created havoc in the crypto market.  While LFG acquired those bitcoins to save UST, it couldn’t. UST, supposed to be worth $1 at all times being a stablecoin, …

Terra says it has halted blockchain for second time in 24 hours

With its native token LUNA and stablecoin UST in freefall, Terra says it has halted its blockchain for the second time in 24 hours. In a tweet posted at 10:13pm Eastern Time, Terra said its blockchain “has officially halted at block 7607789.” “Terra Validators have halted the network to come up with a plan to reconstitute it. More updates to come,” it continued. The Terra blockchain has officially halted at block 7607789. Terra Validators have halted the network to come …

Binance suspends LUNA and UST withdrawals amid market turbulence

Crypto exchange Binance has suspended withdrawals of LUNA and UST tokens as the Terra-based stablecoin struggles to recover its peg to the US dollar. Binance announced the temporary suspensions in a blog post earlier this morning, blaming “a high volume of pending withdrawal transactions” caused by network congestion. “Binance will reopen withdrawals for these tokens once we deem the network to be stable and the volume of pending withdrawals has reduced. We will not notify users in a further announcement,” …

Justin Sun to launch stablecoin called USDD on the Tron blockchain

Tron will have its own native stablecoin called USDD from May 5, Tron founder Justin Sun announced on Thursday. The stablecoin won’t operate like traditional ones do, such as Tether (USDT) and Circle’s USD Coin (USDC), which keep dollars (and other assets) in bank accounts as backing. Instead USDD will be an algorithmic stablecoin like TerraUSD (UST) and Frax Finance (FRAX). The stablecoin will have a similar system to these algorithmic stablecoins in order to keep its peg to the …

Frax Finance may buy large amounts of major cryptos to back its stablecoin

Frax, an algorithmic stablecoin protocol, is mulling the idea of buying billions of dollars’ worth of native tokens of major blockchains to use as reserve collateral for its stablecoin.  The stablecoin, called FRAX, maintains its dollar value by being partially collateralized by USDC, along with an algorithm that buys and sells FRAX with another token called Frax Shares (FXS). When the stablecoin was launched, it was collateralized fully by USDC, but as it expanded, it used the algorithmic elements to …

Current state of DeFi in 2021: Part 2

December 2, 2021, 3:27PM EST • 9 min read Quick Take This is a section from The Block Research’s upcoming 2022 Digital Assets Outlook report The nature of decentralized stablecoins became more diverse with the rise of algorithmic stablecoins backed by fractional reserves or endogenous collateral Centralized custodians played a pivotal role in bringing Bitcoin into DeFi Lido denominated the liquid staking sector with billions under management Most miner extractible value originated from arbitrage Join The Block Research for exclusive …