Notitia
Cryptos pegged to a stable currency.
A stablecoin aims to hold a fixed value, usually $1. The biggest ones (USDT, USDC) are backed by dollar reserves and Treasuries; others are algorithmic or crypto-over-collateralised (DAI).
They are the settlement money of crypto, a haven during volatility and the fuel of DeFi. The key risk: the quality and transparency of reserves, and a ‘depeg’ if trust collapses.
A reserve-backed stablecoin trades at $0.99. An arbitrageur with redemption access at the issuer steps in.
Arbitrageurs’ buying pulls the price back to $1, as long as reserves are real and redemption is open. A pro checks reserve quality and who may redeem, not just the price.
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