What is a stablecoin ?
The term stablecoin refers to a crypto asset issued on the blockchain, whether by a regulated entity, a decentralised autonomous organisation (DAO) or a decentralised finance protocol. Their value is most often backed by a fiat currency, such as the dollar or the euro. In some cases, they may be more tangible assets of traditional finance, such as gold. The parity between the stablecoin and its underlying asset can be maintained through various mechanisms (collateralization, algorithm, etc.).