Stablecoin
A crypto asset designed to track a reference value, commonly a national currency.
In more detail
Stablecoins try to keep a predictable price through designs that may involve reserves, collateral, redemption or incentives. The word stable describes the target, not a guarantee. To understand one, look at how holders can redeem it, what backs it and which institutions or contracts they depend on when its market price moves.
How you might use it
Before treating a dollar-targeting stablecoin as interchangeable with dollars, you check its reserves, redemption access and recent trading price.
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