Tokens & Assets
Also: stable asset, pegged token
Stablecoin
A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar.
Stablecoins maintain price stability relative to a reference asset — usually USD — through one of three mechanisms: fiat reserves (USDT, USDC), crypto over-collateralization (DAI, LUSD), or algorithmic supply adjustment (historically prone to failure, as UST demonstrated). Stablecoins are the lifeblood of DeFi — enabling lending, trading, and yield without direct fiat integration. Stablecoin flows between chains and protocols are a key on-chain signal for capital rotation.