The Use Cases and Benefits of Stablecoins in Crypto

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In cryptoverse there are plenty of stablecoins existing for a purpose. it is playing huge role in this system unlocking enormous possibilities for investors . Crypto is sailing on the boat which is Stablecoin because of the way how it works.

Plenty of important Use-Cases and benefits of stablecoins that I'm explaining ahead in this blog briefly but first let me simply tell what Stablecoin is.

What is Stablecoin?

Stablecoin is crypto stable currency equivalent to $1 peg backed by either dollar reserve or crypto.

Some types of stablecoins are fiat backed, crypto backed, algorithmic.

Popular Stablecoins like $USDT, $BUSD, $USDC and also $HBD the only Stablecoin of hive Blockchain.

1- The Flow of Money in Crypto

Without the inflow and outflow of money crypto won't survive as bringing money or taking out will be paused but it is all possible cuz of stablecoins.

When someone wants to invest in market Stablecoin is a Gateway to enter. Simply can buy it from Banks or through P2P to trade it with digital assets.

2- Payments Across the Borders

As the adoption is spreading, more businesses are starting to accept payments in Stablecoins.

Also it is easy to pay any clients living in other countries through Stablecoins Without paying hefty taxes to the banks.

Stablecoins work 24/7 unlike banks where payments could get delayed and takes time to arrive.

3- Lending with Stablecoins

It is possible to lend Stablecoin and it comes with high yield simply by Lending keeping interest rate accordingly.

Centralized platforms doesn't offer high APY's but some decentralized protocols on DeFi offers high APY's.

4- Generating high Yields Farming with Stablecoins

In DeFi there are decentralized exchanges or protocols where it is possible to farm Stablecoins and make Passive income.

It comes without risk as there's no volatility so Impermanent loses doesn't exist.

CubFinance is a decentralized exchange (Dex) where Stablecoin farm; bHBD-BUSD offers 20% APY.

5- Stablecoin Savings

The only Stablecoin I know which gives 20% APR on Savings is $HBD.

Hive backed Dollar ($HBD) is kinda 4 parallel universe ahead of other Stablecoins as it is only one I found that have this possibility.

Some of benefits of Stablecoins

It comes with many benefits such as some mentioned below;

to keep funds in crypto safe without volatility
fast transactions
low fee's
it works nonstop borderless and also transparent.

Wrapping up..

Stablecoins is kind of making ease in crypto whether it is moving funds from centralized exchanges to DeFi or bringing money from fiat world to crypto.

It still has risk as we have seen Stablecoin $UST tragedy before. So, keeping funds in different chosen Stablecoin with less conspiracies is a better choice.

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_{Thanks for reading.} _Greetings.

All the content and images are mine except indicated. No copyright infringement intended - 14/01/2023.

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