#StablecoinPayments A **stablecoin** is a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a reserve asset such as a fiat currency (e.g., USD, EUR) or a commodity (e.g., gold).

There are three main types of stablecoins:

1. **Fiat-collateralized**: Backed 1:1 by fiat currency held in reserves. Example: **USDC, USDT (Tether)**.

2. **Crypto-collateralized**: Backed by other cryptocurrencies, often over-collateralized. Example: **DAI**.

3. **Algorithmic (non-collateralized)**: Use algorithms and smart contracts to control supply and stabilize price. Example: **FRAX (partially algorithmic)**.

They're commonly used for **remittances, trading, DeFi, and as a store of value** during crypto market volatility.

Would you like an example of how a specific stablecoin works?