This document discusses stablecoins, which are cryptocurrencies designed to maintain price stability. It defines stablecoins as cryptocurrencies collateralized by underlying assets to minimize volatility. Stablecoins are used for hedging against cryptocurrency price fluctuations, transferring funds between exchanges, and lending on cryptocurrency markets. The main types of stablecoins are asset-backed off-chain coins collateralized by fiat currencies, asset-backed on-chain coins backed by cryptocurrencies, and non-collateralized algorithmic coins. Popular stablecoins discussed include Tether, USD Coin, and Dai. The document also outlines stablecoin projects specific to Singapore like SGDR and StraitsX.

2. Who we are
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3. Sponsor
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4. Kenneth Hu
• CTO at Baypay Pte. Ltd.
• I am enthusiast, not expert.
• Ethereum, Bitcoin, Web application
• Email: Kenneth.hu@Hotmail.com
• Blockchain&Dapps meetup
• Singapore DeFi meetup

5. Stablecoins

6. Stablecoin...defined!
• A stablecoin is a cryptocurrency that is collateralized to the value of
an underlying asset and is programmable stores of value that a
network can peg to any other value in the world.

7. Why are stablecoins created?
• They are intended to solve the volatility issue that arguably holds
back the potential adoption of cryptocurrencies for everyday
payment purposes.

9. How are stablecoins used?
2013 2016 2019
Stablecoins are mostly used
as a mechanism to hedge
against the high volatility of
cryptocurrency markets.
With the government's policy
contraction on crypto currency, it is
difficult to exchange legal currency
between exchanges, and investors have
switched to using stable coin to transfer
funds and transactions between
exchanges and wallets.
The trading demand for stable coins is
too large, resulting in a limited
shortage of stable stocks. Therefore,
the borrowing market is derived and
investors will invest in stable coins.
Hedging Transaction Lending

10. Types of Stablecoins
• Asset-backed off-chain - Fiat-Collateralized
• Asset-backed on-chain - Crypto-Collateralized
• Seigniorage-Style (Algorithmic) - Non-Collateralized

11. Asset-backed off-chain
• Stablecoins backed by a “regular” fiat currency such as USD or euro,
precious metals, or other real-world assets. It requires trust in an
opaque and centralised third party to hold the collateral
Fiat-Backed

13. One-click Purchases
Create account
on TrueUSD App
Verify your
identity
Send wire with
unique transaction
code to partner
After wire is received, TrueUSD is
created by smart contract and
sent your wallet

14. One-clickRedemptions
Create account
on TrueUSD App
Verify your
identity
Send TrueUSD to your
unique redemption
address
TrusUSD is deleted by smart
contract and a wire is sent to
your bank account

15. Tether/USDT
Cap
$4.1B
Volume
$23.7B
Founders : JL Van Der Velde, Giancarlo Devasini,
Stuart Hoegner
Company : Tether
Backers : Bitfinex
Stability Method : Fiat Collateralized
Description : Tether was the first stablecoin to
achieve widespread adoption. It was intended
largely to facilitate cryptocurrency trading as the
organization has deep ties to the major exchange
Bitfinex. Given its importance and visibility, it has
received significant scrutiny from regulators (and
criticism) for the lack of transparency in reporting
the US Dollars it claims to hold in reserve.
4100
422
190
9.5
255
0
500
1000
1500
2000
2500
3000
3500
4000
4500
USDT USDC TUSD Gemini Paxos
Cap.
Cap.
2378
206.08
404.96
5.14
396.04
23.33
0
500
1000
1500
2000
2500
Volume
Volume

17. Asset-backed on-chain
• Stablecoins backed by cryptocurrencies such as ether, it is dependent
on the stability of the cryptocurrency on the other side of the
equation.
Crypto-Backed

18. How are DAI stablecoins created?

19. • https://vimeo.com/321822613

20. Seigniorage-Style (Algorithmic)
• Stablecoins rely on a combination of algorithms and smart contracts
to maintain price equilibrium. Algorithmic stablecoins require
continual network growth and investment to provide capital and
support a falling currency value.
Algorithmic

21. Why stablecoins are so important
Main
cryptocurrency
Crypto
exchange
Stablecoin
Total supply : 3.3 billion
Daily trading
amount : 20 billion
Exchange must have
sufficient stablecoin
for trading
to avoid that investor cannot trade so as to affect exchange reputation
USDT --------------------------------------------------------------------------------

22. What is different about stablecoins?
Popularity Liquidity Commission
How many
cryptoexchanges
use ? How many on
trading
How much pegged to
fiat currencies? How
much trading volume?
How much transaction
fee are charged for cash
out and for deposit

23. Main stable coins
Issuer
Stablecoin
Exchange
USDT
PAXOS TUSD
GEMINI
DOLLAR USDCUSDT

24. Business model : how issuers earn money
USD/USDT
BTC/USDT
ETH/USDT
Crypto exchange
Crypto exchange
crypto/crypto
fiat/crypto
crypto/crypto
investor
investor
investor

25. Profit model
INTEREST INVESTMENT Commission
Most stable coin did not
backed 100% by cash.
Tether Lawyer Admits
Stablecoin Now 74%
Backed by Cash and
Equivalents. The rest will
be deposits and earn
interest
Cash-out Cash-in and
transfer
Tether admitted the
company has
historically used some
of its reserves to make
investments in bitcoin
and other assets

26. What’s a stablecoin in Singapore?
• SGDR – Singapore Dollar-Backed Stablecoin
• Issued by SGDR Pte. Ltd.(Rate Network Pte. Ltd)
• Insured by the Singapore Deposit Insurance Corporation
• SGDR will be listed on exchanges with a Recognised Market Operator (“RMO”)
license
• Rate raised US$15 million in an initial coin offering (ICO) in 2018
• SGDR is currently only available in closed-beta to accredited, expert or
institutional investors.
• https://sgdr.io/

27. What’s stablecoin in Singapore
• StraitsX
• issued by Xfers
• powered by blockchain platform Zilliqa.
• aims to create a more open financial ecosystem and increase financial
inclusion within Southeast Asia.
• The stablecoin pilot is scheduled to go live in December 2019.
• Xfers was approved by the Monetary Authority of Singapore as a widely
accepted stored value facility, joining EZ-Link Card, Nets CashCard, Nets
Flashpay, CapitaVoucher, and AliPay Merchant Services
• https://www.xfers.com/sg/straitsx-sg/

28. Q & A