Stablecoins

Stablecoin

A token designed to track a reference value such as the U.S. dollar.

What it means

Stablecoins may be fiat-backed, crypto-backed, algorithmic, synthetic, or structured through other mechanisms.

Why it matters

The ticker can look stable while reserve, redemption, liquidity, and chain risks differ sharply.

Same category

Related glossary reads

Stablecoins

Depeg

When a stablecoin trades away from its target value.

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