TerraUSD meltdown, part 1: What is a peg? - Crypto in Plain English - Episode 165 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it16 Touko 2022

TerraUSD meltdown, part 1: What is a peg? - Crypto in Plain English - Episode 165 - by cryptohunt.it

TerraUSD meltdown, part 1: What is a peg?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

What is a peg and what does it do for stablecoins? Welcome to part one of our one-week special on the TerraUSD collapse.

You probably heard about the crypto meltdown of the not-so-stable stablecoin TerraUSD. And it all started with it losing its “peg”. But what is a peg anyhow, and what does losing it do?

A peg describes a very close relationship in value between two financial instruments. The price of one always follows the other’s very closely, something finance called “peg”.

In this case, TerraUSD was pegged to the US Dollar, which is just a fancy way of saying that its own value is always very close to one actual US Dollar.

Unlike other crypto currencies which fluctuate a lot in value, one TerraUSD should have always been worth one US Dollar.

But the system isn’t perfect, think of the peg like a rubber band between the two. In normal times, a TerraUSD could be worth 99c, or a dollar and a cent. The rubber band keeps them close enough for those differences to be very, very small and not matter in practice.

Until it lost the peg. That rubber band snapped, and the stablecoin lost its value and plummeted. It currently sits at just 17c, a total loss of 9 billion dollars which makes this one of the largest crypto meltdowns ever.

So: How on earth did that happen? Let’s dig into the inner workings of TerraUSD’s rubber band in the next episode.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

Jaksot(373)

What is a DAO? - Crypto in Plain English – Episode 29 - by cryptohunt.it

What is a DAO? - Crypto in Plain English – Episode 29 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today we explain what a DAO ("D-A-O") is. You may remember our episode on Web 3 and its core promise ...

5 Marras 20211min

Yield Farming - or how to generate passive crypto income - Crypto in Plain English – Episode 28 - by cryptohunt.it

Yield Farming - or how to generate passive crypto income - Crypto in Plain English – Episode 28 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today we explain what Yield Farming is or how to generate passive income with crypto. Yield farming i...

4 Marras 20211min

What the heck is staking? - Crypto in Plain English – Episode 27 - by cryptohunt.it

What the heck is staking? - Crypto in Plain English – Episode 27 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What the heck is staking? Staking is the process of locking up tokens you own within a blockch...

3 Marras 20211min

What is a Liquidity Pool? - Crypto in Plain English – Episode 26 - by cryptohunt.it

What is a Liquidity Pool? - Crypto in Plain English – Episode 26 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: We explain liquidity pools. If you want to exchange one token for another, you have to have a ...

2 Marras 20211min

How does swapping tokens actually work? - Crypto in Plain English – Episode 25 - by cryptohunt.it

How does swapping tokens actually work? - Crypto in Plain English – Episode 25 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: How you exchange one token for another. Let’s say you own a significant amount of one coin, an...

1 Marras 20211min

What is a dApp? - Crypto in Plain English – Episode 24 - by cryptohunt.it

What is a dApp? - Crypto in Plain English – Episode 24 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we explain dApps (“d-a-p-p-s”), short for decentralized apps. Unlike traditional apps that run...

29 Loka 20211min

What is a blockchain? - Crypto in Plain English – Episode 23 - by cryptohunt.it

What is a blockchain? - Crypto in Plain English – Episode 23 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we’ll explain what blockchains are. Blockchains are the underlying concept of all cryptocurren...

28 Loka 20211min

What’s the difference between crypto and credit card payments? - Crypto in Plain English – Episode 22 - by cryptohunt.it

What’s the difference between crypto and credit card payments? - Crypto in Plain English – Episode 22 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You’ve probably asked yourself - now that you understand crypto, how does “old school” credit card mo...

27 Loka 20211min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
herrasmieshakkerit
rss-lahtijat
rss-bisnesta-bebeja
rss-seuraava-potilas
inderespodi
rss-sami-miettinen-neuvottelija
leadcast
timanttia-hiomassa
rss-kohti-unelmia
rss-juurisyy-johtamisesta-kilpailuetua
rss-porssipodi