
What are stablecoins?
Stablecoins are tokens designed to have stable prices by being pegged to a “stable” asset like the US dollar.
Stablecoins are tokens designed to have stable prices by being pegged to a “stable” asset like the US dollar.
Stablecoins are tokens designed to have stable prices by being pegged to a “stable” asset like the US dollar.
Globally, stablecoins have a $150B+ market cap (~5% of the $2.7T cryptocurrency market). As of December 2021, the top 5 stablecoins are tether, USDC, Binance USD, Dai, and Terra:
Stablecoins keep prices stable in different ways:
Inflation is still a problem for stablecoins that are pegged to the US dollar or another fiat currency. As a result, DeFi protocols like Olympus DAO have started exploring other ways to build a global reserve currency. We’ll cover Olympus in a future post.
People hold stablecoins to:
Before we discuss DeFi further, let’s take a detour and cover how you can earn passive interest on stablecoins and other assets through CeFi (centralized finance) platforms.
Up next: How to earn CeFi yield?