What:
cryptocurrencies designed to maintain a value of \1.00$. They could be:
- Fiat-backed: A central company holds real dollars in the bank for every token issued.
- Risk: The company might lie about its reserves.
- Crypto-backed: You lock up crypto as collateral to mint more stablecoins.
- Risk: If collateral falls too quickly, the system can become under-collateralised (Similar to normal lending in DEXs)
- Algorithmic: Uses traditional supply/demand (minting / burning tokens) to peg price.
- These are highly unstable looooolllll.