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What Are the Three Main Types of Stablecoins (Fiat-Backed, Crypto-Backed, Algorithmic)?

Fiat-backed (centralized reserves), Crypto-backed (over-collateralized crypto), and Algorithmic (smart contract-based peg mechanism).
Greeks.Live13.11.25

What Are the Three Main Types of Stablecoins (Fiat-Backed, Crypto-Backed, Algorithmic)?

Fiat-backed stablecoins (like USDC) are collateralized 1:1 by traditional currency reserves. Crypto-backed stablecoins (like DAI) are over-collateralized by volatile crypto assets.

Algorithmic stablecoins (like older UST models) use smart contracts and seigniorage to maintain their peg without direct external collateral.

What Is the Difference between an Algorithmic Stablecoin and a Fiat-Backed Stablecoin for Treasury Holdings?
How Do Decentralized Stablecoins (Like DAI) Maintain Their Peg Compared to Centralized Ones (Like USDC)?
How Do Stablecoins Maintain Their Peg?
What Is the Difference between a ‘Fiat-Backed’ and a ‘Crypto-Backed’ Stablecoin?

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