📅 Day 58 of 100 – What Are Stablecoins? 🪙⚖️

Stablecoins are cryptocurrencies designed to maintain a stable value — usually pegged to a fiat currency like the US Dollar (USD).

They combine the speed of crypto with the stability of traditional currency.

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🔐 Types of Stablecoins:

1. Fiat-Collateralized

Backed by real money in bank reserves (e.g., USDT, USDC)

2. Crypto-Collateralized

Backed by other crypto assets (e.g., DAI by MakerDAO)

3. Algorithmic

Controlled by smart contracts that balance supply/demand (e.g., UST (failed), FRAX)

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💰 Top Stablecoins:

USDT (Tether)

USDC (USD Coin)

DAI (Decentralized, by MakerDAO)

TUSD (TrueUSD)

FDUSD (First Digital USD)

BUSD (now phasing out)

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✅ Why Use Stablecoins?

Hedge against crypto volatility

Easily trade between coins

Save transaction fees in DeFi

Earn yield through staking or lending

Move funds quickly across exchanges

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⚠️ Risks to Watch:

Regulatory issues

Centralized control (in some)

Algorithmic failure (e.g., Terra UST crash)

$BTC

#WhatareStableCoins