What is Stablecoin?

A stablecoin is a type of cryptocurrency that is designed to maintain a stable value relative to a particular asset or basket of assets. The most common type of stablecoin is pegged to the value of a fiat currency, such as the US dollar or Euro, or even Gold but there are also stablecoins pegged to other assets, such as commodities or cryptocurrencies. Stablecoins are intended to provide the benefits of cryptocurrencies, such as fast and low-cost transactions, without the volatility that is characteristic of most cryptocurrencies. This makes them useful for a variety of applications, such as trading on cryptocurrency exchanges, facilitating cross-border payments, and providing a stable store of value. There are different types of stablecoins, but most operate by using a reserve of the underlying asset that is held by a central authority or through a smart contract. The central authority or smart contract ensures that the supply of stablecoins in circulation matches the amount of the underlying asset held in reserve, thereby maintaining the stable value of the stablecoin. Some of the most popular stablecoins include Tether USD (USDT), USD Coin (USDC), MakerDAO DAI (DAI), Binance USD (BUSD), True USD (TUSD), Decentralized USD (USDD).

Sushi Stablecoin Activity