What is the difference between USDC.E and other stablecoins like USDT and DAI?

3 answers

• Dec 27, 2021 · 3 years ago
  USDC.E, USDT, and DAI are all stablecoins, but they have some differences. USDC.E is an ERC-20 token issued by Circle and Coinbase. It is backed by a reserve of US dollars held in bank accounts. USDT, on the other hand, is issued by Tether and is supposed to be backed by an equivalent amount of US dollars held in reserve. DAI, however, is a decentralized stablecoin created by MakerDAO and is backed by collateral assets locked in smart contracts. So, the main difference is that USDC.E and USDT are centralized stablecoins, while DAI is decentralized.
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• Dec 27, 2021 · 3 years ago
  USDC.E, USDT, and DAI are all stablecoins, but they have different issuers and backing mechanisms. USDC.E is backed by US dollars held in bank accounts, while USDT claims to be backed by an equivalent amount of US dollars. DAI, on the other hand, is backed by collateral assets. Additionally, USDC.E and USDT are issued by centralized entities, while DAI is created through a decentralized system. These differences in backing and issuance make each stablecoin unique in its own way.
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• Dec 27, 2021 · 3 years ago
  USDC.E, USDT, and DAI are all stablecoins, but they have distinct characteristics. USDC.E is an ERC-20 token that is issued by Circle and Coinbase, making it centralized. It is backed by a reserve of US dollars held in bank accounts. USDT, on the other hand, is also centralized and claims to be backed by US dollars. DAI, however, is a decentralized stablecoin that is created through smart contracts on the Ethereum blockchain. It is backed by collateral assets and its value is maintained through a system of incentives and penalties. So, while all three stablecoins aim to provide stability, they differ in terms of centralization, backing, and issuance.
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