![PicsArt_10-06-07.58.16.jpg](https://cdn.steemitimages.com/DQmaz834Gf4PFR9HkFgnQ4rcvSQ6qWVypktNgpRtXi5FeH9/PicsArt_10-06-07.58.16.jpg)

## INTRODUCTION Hello steemian, I am very happy to participate in this week home work tasks which is all about the stability of digital currency and as we all know how volatile cryptocurrency is. In this lecture we will be educated about the stable coin and the rebase token. It is really and interesting one as I will be answering questions on it. ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Explain why Stability is important in Digital currencies. Stability to a layman has to do a substance maintaining a constant position for a particular period of time. When it comes to digital currency, it has to do with a currency maintaining it constant price no matter the rate at which it is being demanded and supply. Stability in digital currency(cryptocurrency) is very important in the market, in that, traders will avoid the risk of loosing because they will be nothing like rising and falling of the currency and by this will bring peace of mind to the traders. Cryptocurrency stability also make it possible for cryptocurrency to be use as a store of value due to the fact that it doesn't experience volatility that is there is no decrease or fluctuations in the coin price. The price of the coin are always backed to fiat or physical currency such as the US dollar, it can also be backed with commodity such as gold and crypto back such as DAI It is also important in that once every trader is aware of the stable coin, it will be easy to make use of it as a medium of exchange because there will be no feat of getting it and regretting later. It will also help in promoting cryptocurrency. And will thereby boost the decentralization system. ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Do you think CBDCs would be good in the future? Weigh the pros and cons in your own understanding and state your position. CBDCs is abbreviated as central bank digital currencies. This is a new development and innovation when it comes to cryptocurrency, it has to do with the way in which digital currency and the country currency have the same value which to me is very good when it comes to the future because it will aids in reducing the way in which individuals spend their funds due to the fact that the will be a central authority(third party) involvement which will be monitoring individual transaction. In as much as ,it is legally backed it will be of great use to trader because the will be making use of it in performing transaction and if the have issues there will always be a third party to assist them. The traders with this and their wallets can perform transaction easily and at their offices, home or anywhere comfortable for them to when there is funds in their wallets. PROS 1) promotion of cryptocurrency With the involvement of government in making the digital currency and the country currency have same value, it will boost the cryptocurrency market thereby making alot of people venture into it because they will now know more and will be willing to learn also with the help of the third party that will always be ready to assist. 2) Generally accepted When the digital currency is government approved, it means individual can make use of it at anywhere in the country and it will be generally accepted individual can make use of it in anywhere religious gathering,bank even will be received in super market and school due to the fact that the government has made it generally accepted. 3) Boost of cashless policy With this there will be a massive boost of cashless policy because individual will only have to transfer funds to the reciever wallet and this will reduce the way in which individuals move around with cash. 4) less robbery attack When an individual move around with less cash it will reduce the criminal activity because you will not be able to obtain any funds from the individual due to the fact he or she is cashless. 5) Fast transaction Whenever a transaction is being performed here it is alway fast. There will be no issues like bank network problem the receiver receive it once the transfer is successful from the individual that is transferring. CON 1) No privacy With the involvement of a central authorities, there will be no privacy when it comes to individual account because the third party will always be monitoring what ever transaction the individual do which the individual will not be comfortable with. 2) less trust In as much as, an individual account is being monitored the individual will be afraid of the funds and transactions he or she makes which will eventually make him develop less trust 3) when the country make the value of digital currency the same value with the country currency it will transaction limited meaning someone outside the country will not be able to perform transaction with another person outside except there both in the same country. 4) problem of devices and network Problem of devices has to do with the number of people that own a phone or system that will make use of it in performing transaction and network problem from service provider has to do with the individual being able to access the network when he or she want to perform transaction. ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Explain in your own words how Rebase Tokens work. Give an illustration. A rebase token is the type of token which is also known as elastic supply token in that the token has a constant price with the quantity varying in circulation, here the total quantity is not fixed. Here, demand and supply has a great role to play because when it comes to this token it works with it by this I mean, whenever there is high demand and supply in the volume the token price is not moved but rather it is still fixed. ILLUSTRATION Let me say for example, I will be using USDT has a rebase token and I have 50 of it that is 50 USDT and the price is $500. As I said earlier the volume varies but price is fixed. If the 50USDT decrease I will be left with 45 USDT but the price will still be $500, if there is an increase in the volume I will have 56 USDT and the price will still be fixed($500) Meaning no matter how the varies the price is always fixed. ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page? ![PicsArt_10-08-08.08.41.jpg](https://cdn.steemitimages.com/DQmbvQtCjkM7LEj1A4NHSfcbcQ81932wNTsD9tu4w5AKobF/PicsArt_10-08-08.08.41.jpg) [Source](https://www.ampleforth.org/dashboard/) formula used in calculating AMPL rebase. Rebase % = {[(Oracle Rate - Price Target) / Price Target] x 100} / 10 From the image above, we can extract the Oracle Rate and Price Target. To calculate the Rebase%; Oracle Rate = $1.003 Price Target = $1.061 Rebase % = {[(Oracle Rate - Price Target) / Price Target] x 100} / 10 ={[(1.003 - 1.061) / 1.061] x 100} / 10 = [(-0.058/1.061) x 100] / 10 = (-0.055 x 100) / 10 = -5.5 / 10 = -0.55% ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction). I will be making use of my binance wallet to show the step Step 1 I first begin by login my binance wallet and when it display you will see a place trades in which have circle in the screenshot below I will click on it. ![PicsArt_10-08-08.15.39.jpg](https://cdn.steemitimages.com/DQmWxvrBBv2ofJRbFiusTaP7RTkZX8vrjS9DAPDqNPy2cCH/PicsArt_10-08-08.15.39.jpg) [Screenshot from binance wallet] Step 2 I will click on ETH/USDT, then the sell side of the market and put the amount that I will sell. Here, I am going to sell 0.0045ETH for 16.41 USDT after I insert this I will click on sell. As shown in the screenshot below ![PicsArt_10-08-08.27.51.jpg](https://cdn.steemitimages.com/DQmXNCSXFXaU3fabmHukX1W5WBgqoD3tLi9iAdohv6NC8FS/PicsArt_10-08-08.27.51.jpg) [Screenshot from binance] Step 3 I had to wait for my order to be filled which took me few minutes. ![PicsArt_10-08-08.40.59.jpg](https://cdn.steemitimages.com/DQmQiAawSoQ3EPisu4gRR1Txg1WQcgQ2FTB9himsPGETMib/PicsArt_10-08-08.40.59.jpg) [Screenshot from binance] When the order was successfully filled USDT was been added to my binance wallet. ![PicsArt_08-16-08.21.01.jpg](https://cdn.steemitimages.com/DQmVRdRwsKz2DveFzbdkchkNX3uAiHsaFVxAv4J54BrVsL2/PicsArt_08-16-08.21.01.jpg) >Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of the stablecoin over fiat money transactions? (Give Screenshot of the transaction) Step 1 I will first open my tron link application since I am working with a tron network after that, I will select USDT once am done with that I will be redirected to a page that I will be able to copy the recieving address but here in my screenshot you will see copies because have copies it already. ![PicsArt_10-08-08.55.55.jpg](https://cdn.steemitimages.com/DQmRPAYtSsMpq3aBPrw4qN8F366fnqTLbwonwpruMbbMFaA/PicsArt_10-08-08.55.55.jpg) [Screenshot from tronlink app] Step 2 I will login to my binance application then click on wallet as shown in the screenshot below ![PicsArt_10-08-09.01.56.jpg](https://cdn.steemitimages.com/DQmV3qpQLkE2f67q5HmcAEirrWPyQa3wjVitxb6mqE9qSTM/PicsArt_10-08-09.01.56.jpg) [Screenshot from binance] Step 3 I will click on withdraw since I am making a withdrawal. ![PicsArt_10-08-09.07.25.jpg](https://cdn.steemitimages.com/DQmSFopQZwhrVDMJnpX7DbwBGeHZRa9fcaEerxD4UQ7bLcD/PicsArt_10-08-09.07.25.jpg) [Screenshot from binance] Step 4 After withdraw there is a space for search Where I searched for USDT which is a cryptocurrency. ![PicsArt_10-08-09.11.50.jpg](https://cdn.steemitimages.com/DQmZmBwu6ZLCJryDuXR7hLHq7BSsfkub1rk5F1HtWRrSJ1Y/PicsArt_10-08-09.11.50.jpg) [Screenshot from binance] Step 5 A space will display where I am ask to insert the address in step 1, select the network and the amount I want to withdraw. ![PicsArt_10-08-09.15.14.jpg](https://cdn.steemitimages.com/DQmbd5mroGYGKsyNAgv6gc5CYKb3PeiYd3Dfuu6wAdUHyZd/PicsArt_10-08-09.15.14.jpg) [Screenshot from binance] Step 6 After that I filled it. I inserted the address, I also selected the network, tr20 network and the amount 16 USDT in which I will be charge a network fee of 1 USDT then I click on withdrawal. Screenshot below ![PicsArt_10-08-09.38.58.jpg](https://cdn.steemitimages.com/DQmSFDQPviXsWKuM84hyTGh9aHWjMkGBAmKjt8mFCmyY3hU/PicsArt_10-08-09.38.58.jpg) [Screenshot from binance] Step 7 Once I click on withdrawal After inserting my password,I click confirm. ![PicsArt_10-08-09.54.51.jpg](https://cdn.steemitimages.com/DQmPZYgcrcpiE7LTmYc6YexhscCKLur5FZrxMHeXRrzGg9N/PicsArt_10-08-09.54.51.jpg) Step 8 My request was successfully summited ![PicsArt_10-08-09.57.04.jpg](https://cdn.steemitimages.com/DQmdRjErVF925z94Ttax5fM3SgZ8tyNStwmfTx2r68zp4DM/PicsArt_10-08-09.57.04.jpg) Step 9 It was being received in my tron link account ![PicsArt_10-08-10.00.13.jpg](https://cdn.steemitimages.com/DQmc9F2XNPpxGkkB5zPC56bMB8ovkv9QsQhpzdFq2iR9fYN/PicsArt_10-08-10.00.13.jpg) OBSERVATION * less transaction fee(network fee) 1USDT * The transaction was not delayed * I performed the transaction in my comfort zone * There was no need for central authority(third party) * High level of security * promotion of cashless policy ## CONCLUSION The lecture was really interesting, I hope you where ble to know more about stable coin and rebase token which is also the form of stable coin, I really enjoy the rebase token because it help me to know that no matter how the quantity of the token is in a particular moment the price is always stable. I want to thank prof @awesononso for the wonderful lecture