What Is a “Stablecoin” and Its Primary Use Case?

A stablecoin is a cryptocurrency designed to have its value pegged to a stable asset, most commonly the US Dollar, to minimize price volatility. Its primary use case is to act as a reliable medium of exchange, store of value, and unit of account within the volatile crypto ecosystem, facilitating trading, lending, and payments without the need to convert back to fiat.

What Is a Stablecoin and How Is It Related to Collateralization?
How Does the Scarcity of Bitcoin Influence Its Long-Term Store of Value Proposition?
What Is a “De-Peg” Event for a Stablecoin, and How Does It Affect the Pool?
What Is the Recommended Practice for Backing up a Private Key or Seed Phrase?
How Do Layer 2 Solutions Affect the Cryptocurrency Fee Market?
What Are Stablecoins and Why Are They a Common Diversification Asset for DAOs?
How Does High Volatility Affect the Use of Cryptocurrency as a Store of Value?
How Does the Choice between USD-pegged and Crypto-Pegged Collateral Affect Margin Requirements?

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