⭐WHAT IS A STABLECOIN?
Stablecoins are assets with reduced volatility pegged $1:1$ a to fiat or commodities. They work through three collateralization models: fiduciary (bank reserves), cryptographic (overcollateralization in smart contracts), and synthetic/algorithmic. Their main uses are capital preservation, providing liquidity in DeFi, and efficiently executing trading pairs without triggering taxable exit events to the traditional banking system with each operation
Stablecoins are assets with reduced volatility pegged $1:1$ a to fiat or commodities. They work through three collateralization models: fiduciary (bank reserves), cryptographic (overcollateralization in smart contracts), and synthetic/algorithmic. Their main uses are capital preservation, providing liquidity in DeFi, and efficiently executing trading pairs without triggering taxable exit events to the traditional banking system with each operation
