#StablecoinPayments Stablecoins: Cryptocurrencies designed to maintain a stable value relative to a specific asset. Common mechanisms for achieving this peg include:

* Fiat-backed: Holding reserves of the pegged fiat currency (e.g., USD) in a custodial account. Examples include USDC and USDT.

* Crypto-backed: Using other cryptocurrencies as collateral, often in an over-collateralized manner to absorb price fluctuations. Examples include DAI.

* Algorithmic: Relying on algorithms and smart contracts to adjust the supply of the stablecoin to maintain its peg.