What Are Stablecoins?

A Stablecoin is a type of cryptocurrency that is designed to maintain a stable market price. Stabelcoins offer a refuge from market volatility and periods of uncertainty without requiring cryptocurrency holders to convert their holdings to fiat currency.

They were initially created to allow more efficient exchange of digital assets between market players. Subsequently, they have acquired more and more importance and have profoundly changed the world of cryptocurrencies.

Many stablecoins have their values fixed by pegging them to the price of another asset, but this is not always the case. For instance, USDC and USDT are pegged to the US dollar.

We can divide all the stablecoins in three different categories:

- Collateralized stablecoins;
- Partially collateralized stablecoins;
- Uncollateralized stablecoins.

The first on the list are the safest ones, while the others do not enjoy as high a reputation.

Collateralized stablecoins are expected to actually hold the assets against which their coin is pegged, so they issue new units based on the value of their holdings.

Stablecomp

Stablecomp helps people and institutions assess and manage opportunities to earn interest on their stablecoins. Stablecomp is the only source of comprehensive risk assessment for opportunities to earn interest on stablecoins. Stablecomp also has an intuitive and user-friendly interface that allows users to easily allocate their stablecoins to “pools” that pay interest.
By combining the transactions of many users, Stablecomp reduces transaction fees to near zero, so Stablecomp allows users to re-invest their yields to earn compound interest.

Learn more about Stablecomp and how it can help you earn high returns with low risk.

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