Stablecoins Algorithmic Gamble: Stability Versus Scalability.
Stablecoins have emerged as a cornerstone of the cryptocurrency ecosystem, offering a bridge between the volatility of digital assets and the stability of traditional currencies. They aim to provide a more predictable and reliable value, making them essential for various applications, from everyday transactions to decentralized finance (DeFi). Understanding stablecoins, their mechanisms, and their risks is crucial for anyone navigating the world of crypto.
What are Stablecoins?
Definition and Purpose
Stablecoins are cryptocurrencies designed to maintain a stable value relative to a specific reference asset, most commonly the US dollar. Unlike Bitcoin or Ethereum, which can experience significant price fluctuations, stablecoins aim to offer a more predictable value, making them suitable for...