The volatility of cryptocurrencies has been one of the crypto trend’s largest problems, and it is still nowhere near being solved for the vast majority of them. However, as an attempt to combat this issue, researchers came up with a concept of stablecoins — cryptocurrencies that would be backed with real-world assets (fiat currencies, gold, etc.), or by other means, such as control of circulating supply or being backed by other coins.
However, most stablecoins were considered to be shady, and not real cryptocurrencies, as methods of controlling their prices often had a certain level of centralization accompanying them. This changed when the crypto winter struck, and investors needed an alternative that would protect them from dropping prices.
Tether (USDT) emerged as the most popular stablecoin, which is a title that it still holds to this day. However, Tether has had a number of controversies which caused many to lose trust in it and turn to alternatives to this alternative.
This is where Ethereum’s Maker DAO and a…