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What Is a ‘Stablecoin’ and What Problem Does It Aim to Solve in Crypto?

A crypto pegged to a stable asset (like USD) to solve the high volatility problem, enabling stable transactions and DeFi collateral.
Greeks.Live07.11.25

What Is a ‘Stablecoin’ and What Problem Does It Aim to Solve in Crypto?

A stablecoin is a type of cryptocurrency designed to have a stable value, typically pegged to a fiat currency like the US dollar, or backed by commodities or algorithms. They solve the problem of high volatility inherent in cryptocurrencies like Bitcoin, making them suitable for everyday transactions, lending, and use as collateral in DeFi.

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