How Do Stablecoins Attempt to Mitigate the Volatility Inherent in Cryptocurrencies?

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US Dollar, or backed by commodities or other cryptocurrencies. They mitigate volatility by using collateral, algorithmic controls, or a combination of both to maintain the peg, making them useful for transactions and as a store of value.