$USDC Cryptocurrencies are known for their high level of volatility, as their prices can rise significantly or fall drastically within a few hours, not to mention in a few days and weeks. In such circumstances, a solution is needed to maintain a Stable Price of a Currency, while offering users all the other advantages of Decentralized Options.
In this guide, we will analyze such solutions with a special focus on USD Coin (USDC), a stablecoin issued by the Centre Consortium, LLC, which consists of Circle and Coinbase.
What is a stablecoin?
First, a brief overview of stablecoins and how they work. The European Central Bank defines stablecoins as "digital units of value that differ from existing forms of currency and are based on a set of stabilization instruments to minimize their price fluctuations in relation to a currency or a group of them."
Stablecoins are a digital representation of fiat currencies on blockchain networks, developed to mimic fiat prices using a stabilization mechanism.
