Role of Stablecoin in Decentralized Finance (DeFi)

A new type of secure tokens, stablecoins may provide a complete solution to the volatility problem. A stablecoin is a cryptocurrency- again, think of a token that is used as world fiat currency, that uses blockchain technology for transactions, but is also backed by fiat currencies (like dollars, euros or yen) or else by commodities (similar to the gold standard, but using digital tokens). By combining these latter features, stablecoins provide the benefits of both cryptocurrencies and traditional currencies. In simple terms, stablecoins are price-stable cryptocurrencies that have their value pegged to another asset like the US dollar. What are the types of stablecoins? The classification of stablecoins includes three major types: fiat-collateralized coins, crypto-collateralized coins, and non-collateralized coins. Fiat-collateralized Crypto-collateralized Non-collateralized Can stablecoins help your business? With their combo of flexibility and stability, and their advantageous a...