<ul data-eligibleForWebStory="true"><li>Stablecoins are crypto assets designed to maintain a consistent value for practical everyday transactions.</li><li>They can be Fiat-Backed (e.g., US Dollar), Crypto-Backed (collateralized by other crypto tokens), or Algorithmic (value controlled by supply and demand).</li><li>Stablecoins aim to eliminate the price volatility seen in other cryptocurrencies.</li><li>They work by maintaining price stability, managing reserves publicly, and being audited independently.</li><li>Advantages include reduced volatility, improved liquidity, and various use cases like payments, trading, and DeFi.</li><li>Risks include regulatory concerns, counterparty risk, and liquidity risk due to insufficient reserves or slow token issuance.</li><li>Stablecoins have a significant impact on the growth of DeFi and enable new avenues for trading, lending, and investment.</li><li>Future developments aim to enhance stability measures and infrastructure to provide a more efficient ecosystem for users.</li></ul>

What is a Stablecoin: A Complete Guide

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