Stablecoins like Tether (USDT), USD Coin $USDC (USDC), and Dai (DAI) maintain fiat pegs through collateral or algorithms. USDT holds dollar reserves, audited periodically, to ensure 1:1 backing. USDC follows similar transparency, while DAI uses over-collateralized crypto assets on Ethereum. Depegging risks arise from reserve mismanagement or market panic—think TerraUSD’s collapse. If trust in reserves wanes, mass redemptions can break the peg, causing price drops.$OP
DAI’s algorithmic model faces risks from volatile collateral like ETH. Regulatory scrutiny also threatens stablecoin stability, as seen with USDT’s past fines. Despite risks, stablecoins enable DeFi liquidity and hedge volatility. How critical are stablecoins to your portfolio?$SOL
