Beginner7 min read
Stablecoins Explained
Understand USDT, USDC, and other stablecoins, including backing models and depeg risk management.
stablecoinusdtusdc
Why stablecoins matter
- They provide dollar-like liquidity for trading, remittance, and on-chain payments.
- They are often the core quote assets across crypto markets.
Model types
- Fiat-backed stablecoins with reserve attestations.
- Crypto-collateralized models with over-collateralization rules.
- Algorithmic designs that can be fragile in stress events.
Due diligence
- Issuer transparency and reserve reporting quality.
- Redemption pathways and jurisdictional controls.
- Distribution concentration and on-chain liquidity depth.