Glossary
Stablecoin
A token designed to hold a steady value, usually one dollar.
Fiat-backed stablecoins hold reserves in cash and short-dated government debt; crypto-backed ones over-collateralise volatile assets; algorithmic designs try to hold the peg with incentives alone and have a poor record. What matters is what backs it and who can redeem.
Related terms
Ethereum, Smart Contract, Gas, DeFi, Decentralised Exchange