Stable Coins Primer
Stablecoins, also referred to as "stable currencies," are cryptocurrencies designed to maintain a consistent market price with minimal fluctuations, while retaining the fundamental characteristics, advantages, and functionality of other cryptocurrencies.
To achieve their high level of price stability, stablecoins are typically backed by collateral in the form of another financial asset. This collateralization helps ensure their value remains steady, even amidst varying market conditions.