Good day all, it's an honor to be part of this great class again and we go again this week on the assignment from @awesononso

1.Explain why Stability is important in Digital currencies

The digital currency has had in recent times wide adaption by many people which is a good thing but one issue still lingers over the use of digital currency in desk time and the long run as a currency of the future and this problem is the stability in cryptocurrency.

Cryptocurrency is a decentralized project and when centralization is removed from a project it means that there is no one controlling it and that means no one can regulate how these tokens move either upwards or downwards
This has become an issue cause it means that one can see his capital go down the drains due to the action of people buying and selling the asset he invested in

The absence of stability is because what regulates cryptocurrency price here is no longer a central body but rather a community and people involved in the project where when a lot of people buy we see price move up and when many sell we see a fall in price

This lack of stability doesn't make crypto interesting and this is something that has strongly hindered its growth and so the need to introduce stability is needed in cryptocurrency so that we remove the issue of seeing one investment value dropping drastically

Let me give an example :
Mark initially buys 50$ worth of Shiba that is pumping some weeks ago. he comes yesterday and sees the token at 500$ and he is excited and plans to remove the money the next day to pay some bills, he comes tomorrow and see the value now at 30$ and maybe he had all his hope pegged on using the 500$ and he is heavily disappointed. This occurred due to a lack of stability with cryptocurrency making this a project one can't hope to remain at a high price. If this issue can be solved, more people would be encouraged to dive into the project and avoid the issue of coming back after a while and seeing the value of your investment dropping badly

2. Do you think CBDCs would be good in the future? Weigh the pros and cons in your understanding and state your position.

With the country, I live in which is Nigeria with the current government I don't think it's a good idea. My reason starts from the fact that it means a big break away from the reason cryptocurrency was created which is decentralization. Also returning power to the government is a central body made up of humans who can be very selfish and try to manipulate the price of thus toke to their benefit either by setting up regulations on the tokens and regulating how one uses the token. It's just a move from one going to the physical bank to an online bank

Pro

1. Trust on the use of cryptocurrency: a lot of people prefer going into government legalized projects with the belief that anything with government backing has a tendency of lasting so if CBCDs coming into existence we would see a lot of people move into it

2. Legalization: a lot of countries up till now have deemed crypto not good example is my country Nigeria but with the introduction of CBDC, these tokens would have legal backing making them a good prospect

3. Scamming would be highly reduced cause for these tokens to be issued to one, he would need to do lots of verification making it easy to catch scammers who try to dupe people

Cons

1. Government control removes the power from the people which is the reason for creating a cryptocurrency
2. Rules and regulations that favor the rich can come into place
3. Time-consuming cause getting these tokens would involve long processes where one have to go through a lot of verification process

3.Explain in your own words how Rebase Tokens work. Give an illustration.

Cryptocurrency or should I say the world of blockchain has tried to solve every issue presented to it that may be an obstruction to its growth and for this stability problem came to the invention of rebase tokens. The stability here doesn't come from using a centralized body rather, these tokens are tokens that adjust their supply to price and demand and supply.

HOW DO THESE REBASE TOKENS WORK

These tokens like I said using the price of the tokens and decreasing or increasing the available tokens. When we see an increase in price we see the amount of the token in circulation increase with people seeing a notable increase in the number of tokens in their wallet there causing a reduction in price due to increased supply and when there is a drop in price we see a decrease in the circulating supply so with reduced supply comes high demand which pushes price back up
EXAMPLES INCLUDE:YAM, RMPL,BASED,AMPL,OHM,MONSTA,etc

4.Go to the https://www.ampleforth.org/dashboard/. Check the necessary parameters and calculate the rebase %. What else can you find on the page?

We will be using the indicator for this action and when we click on this we are taken to the page below and we use the details I list below to calculate rebase %

source
Oracle Rate = $1.104
Target Rate = $1.061

Using the Rebase % formula

Rebase % = [($1.104 - $1.061) / $1.061] x 100 / 10

Rebase % = [($0.043) / $1.061] × 100 / 10

Rebase % = ($0.104) × 100 / 10

Rebase % = (0.104) / 10

Rebase % = 0.0104%

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What else can you find on the page?

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MARKET CAP AND AMPL CAM

source

For the market cap side, we can see a chart and decide the duration we wish to measure the market cap be it 90 days or 1 year, or 30 days.

PRICE AND SUPPLY CHARTS

source

5.Trade some tokens for at least $15 worth of USDT on Binance and explain your steps. (Give necessary Screenshots of the transaction).

For this question, I would be selling 20$ of OGN for usdt using my verified finance account using the trade section of the app and this appeared in my wallet automatically

6.Transfer the USDT to another wallet with the Tron Network. From the transaction, what are the pros of stablecoin over fiat money transactions? (Give a Screenshot of the transaction).

I would be transferring the 20$ to my tronlink wallet but first, I copy my tronlink usdt wallet address

I go to my finance wallet and click withdrawal and then paste the address and choose the Tron blockchain and my charge was 1 usdt

Now after several process, the request was submitted as seen below:

In nothing less than a minute the tronlink wallet received it immediately as seen below :

From the transaction, what are the pros of stablecoin over fiat money transactions?

1. Low charge, in doing the transaction I was charged less around a dollar
2. The transaction was very fast
3. No stupid laws to regulate how much I sent

CONCLUSION

This class was very wonderful with lot of knowledge been shared here and this is actually my first time hearing about rebase tokens and i really understood what it is all about very well thank you @awesononso,