A stablecoin is a type of cryptocurrency that is designed to have a stable value by being pegged to a reserve asset, such as a fiat currency like the US dollar or a commodity like gold. This stability is achieved by mechanisms like collateralization, algorithmic adjustments, or centralization. Stablecoins are often used as a medium of exchange or store of value in the volatile cryptocurrency market. Examples of stablecoins include Tether (USDT), USD Coin (USDC), and DAI.
