We all know that the one very popular feature of most cryptocurrencies is "volatility". This is because they are not backed by a reserve asset. That means HIVE for example may be $1.5 today and in the next 24 hours becomes $4 and after 48 hours , it plunges back to $1.2 and that likes of jerks in price movement. We cannot really tell that the value that our asset pose this minute would remain so the next minute.
This led to the development of Stable coins/tokens. Investopedia defines a stablecoin as a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. Furthermore, stablecoins are believed to have gained traction as they attempt to offer the best of both worlds. That is, the coins allows for instant processing and security or privacy of payments as applicable to cryptocurrencies, and is volatility-free in valuations as applicable to fiat currencies.
Going deeper, Crypto-Collateralized Stablecoins are one category of stablecoins that is quite unique to behold. The stablecoins in this category are backed by other cryptocurrencies. An example is INDEX token issued by @he-index. It is an index of the best performing tokens in the Hive-Engine market. LBI also serves that purpose holding value against 1 LEO. The essence is to save the coin/token from high volatility.
Few weeks ago, I stumbled on a token known as CENT which is rewards contents created on the tribe - centblog or when a hive user uses the #cent tag in a post or posts through the CENT community. The Cent tribe was created to focus on general content. The very intruiging thing I read about the CENT token was the creators' wish to maintain a price of ONE CENT ($0.01), that is a hundreth part of a dollar.
CENT Token is a token that aims to reach a price value of $0.01. Cent Token's price is different from stable cryptocurrencies. The token has a volatile price trend around the target price. It aims to provide ease of transaction to its users by offering high liquidity and high volume.- source
The community has grown so far with 87 subscribers and 35 active users. However, there are several posts now adding he #cent hashtag to their posts to earn the CENT token. Interesting that the price of the CENT token has solidly stayed around 1 CENT over the past weeks and sparingly scale to the highs of 3 to 4 Cents in value.
Besides, there are Four Dieselpools with the CENT token: SWAP.HIVE:CENT, CENT:LEO, SWAP.HBD:CENT and CENT:POB and all four DeFi pools are performing well with with at least 59% APY and as much as 119% APY for liquidity providers.
While the value of the CENT token is small, still hanging around the design 1 Cent, I hope that it can be easier to maintain that price price. Thanks to @anadolu and his team for the creativity. I hope that rewarding users with CENT token can over time become a sustainable additional earnings for hive authors, especially as it supports general contents.
I decided to add CENT to my second layer curation portfolio and I am looking forward to a target of holding at least 100k CENT Power which can actually give out upvotes that could be worth a dollar or more. I am starting my stake with 2,500 CENT and will be steadily adding to the stake till at least 20k CENT Power be reached before the end of the year 2021.
What are your thoughts about CENT? Can the 1 Cent value actually be maintained on a long run or can it get better? DO we see CENT emerging as another stabletoken on hive-engine DEX?
Read the CENT whitepaper and get more information that could guide you into investing in the CENT token.
What is Hive?
Hive is an innovative and forward-looking decentralized blockchain and ecosystem, designed to scale with widespread adoption of the currency and platforms in mind. By combining the lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading Web3 blockchains used by people around the world. source
What is Hive-Engine?
Hive-Engine is a smart contract platform on top of the Hive blockchain. It allows communities and businesses to build their own tokens, which are then built on top of the technology provided by Hive. This is the ultimate layer 2 solution. The token created on Hive-Engine is then immediately tradable with Hive on their exchange.
About me...
I am a called teacher, a serial entrepreneur and a Graduate of Agricultural Engineering. Nigeria is my root and a place full of opportunities. I dropped out of a Master's Degree program due to funds, yet i do not regret growing the courage to start my buzsines from the scratch. Today, I've built layers of Businesses on the Hive blockchain in terms of Curation and it's a sustainable passive way of earning crypoto while learning.
I am your favourite Hive Tribes Promoter and Curapreneur!
I am @Uyobong.
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