Cryptocurrency Q&A
Is DUSD a stablecoin?
Is DUSD a stablecoin?
Andrea
Fri Sep 27 2024
|
6 answers
1537
Could you please clarify if DUSD is classified as a stablecoin? I'm interested in understanding the mechanisms that ensure its stability, if any, and how it differs from other digital currencies that may not have the same stability features. Additionally, I'd like to know if DUSD is pegged to a specific asset, such as a fiat currency or a basket of assets, to maintain its value. Thank you for your insight.
6 answers
KatanaGlory
Sat Sep 28 2024
DUSD, a stablecoin designed to maintain a stable value relative to the US dollar, exhibits significant deviations from its intended peg.
Was this helpful?
283
54
GinsengBoostPower
Sat Sep 28 2024
Moreover, these deviations can create arbitrage opportunities for traders, who can profit by buying DUSD when it trades at a discount and selling it when it trades at a premium.
Was this helpful?
299
26
CherryBlossomPetal
Sat Sep 28 2024
On average, DUSD trades at a premium or discount of over 100 basis points (bps) against the USD, underscoring its inherent volatility.
Was this helpful?
374
46
HanjiArtistryCraftsmanship
Sat Sep 28 2024
In contrast, reputable cryptocurrency exchanges like BTCC offer a range of services, including spot and futures trading, as well as secure wallet solutions, that cater to the diverse needs of crypto enthusiasts.
Was this helpful?
102
93
KabukiPassion
Sat Sep 28 2024
This departure from its intended stability undermines the primary purpose of a stablecoin—to provide a reliable and low-volatility store of value.
Was this helpful?
165
36
Load 5 more related questions
