Stablecoins:
Unlike regular cryptocurrencies, the rate of stablecoins is tied to the value of the underlying asset: this could be the rate of a real currency (for example, the dollar or yuan), a cryptocurrency (for example, Bitcoin), or a physical asset (for example, gold) price of a commodity (for example, futures on oil) or security (shares of a certain company). In theory, a stablecoin can be bought or sold at a fixed price at any time. When the coin is exchanged for fiat money, the stablecoin is typically “burned” and goes out of circulation. At the same time, the coin has all the qualities of a cryptocurrency, but, unlike Bitcoin or Ethereum, it is not subject to volatility, that is, sharp price jumps.
What types of stablecoins are there?
Backed by fiat currency (dominated by the US dollar), centralized. These include USDT, USDC, TUSD, BUSD.
Provided with goods - real estate, gold, oil.
For example, one Digix Gold coin (DGX) is backed by one gram of physical gold.
Backed by another cryptocurrency. The Wrapped Bitcoin (WBTC) stablecoin is backed by Bitcoin at a 1:1 rate, and the DAI stablecoin is backed by the Ethereum cryptocurrency (however, it does not reflect the Ethereum rate, but uses loans in this cryptocurrency to maintain a 1:1 rate to the dollar).
Algorithmic stablecoins. These stablecoins do not have physical backing and are fully decentralized, that is, pricing is not supported by a specific issuer, but by a smart contract.
Top leaders
Tether (USDT)
USD Coin (USDC)
Dai (DAI) is a stablecoin created on the Ethereum platform.
TrueUSD (TUSD) is a stablecoin that is pegged to the US dollar and is backed by real money held in bank accounts.
Binance GBP Stable Coin (BGBP).
