Stablecoin
DeFi
Token designed to maintain a stable value via a peg.
Stablecoins target a price like USD using collateral and redemption mechanisms. Design choices affect stability and risk. Verify reserves and rules before relying on them.
Frequently asked questions
What types of stablecoins exist?
Fiat backed, crypto collateralized, and algorithmic. Each has different risks and transparency.How do I check stability?
Review reserves, audits, and redemption rules. Watch market prices across venues for de pegs.Are yields on stablecoins risk free?
No. Lending and farming add smart contract and counterparty risks.