A stablecoin is a cryptocurrency that is tied to a stable asset in order to maintain a stable price.
The price does not depend on the supply and demand of the token, unlike other cryptocurrency tokens. It is designed to maintain a stable price, just like the asset it is tied to.
Stablecoins can be tied to:
- Paper (fiat) money
- Cryptocurrency
- Algorithms (smart contract)
Stablecoins include:
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