Stablecoin
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Definition
A cryptocurrency designed to maintain a 1:1 peg with a fiat currency (usually USD). Backed either by fiat reserves (USDT, USDC), crypto collateral (DAI), or algorithmic mechanisms (the failed UST).
Example
USDC in your wallet should always be worth $1. When it deviates, it's a crisis signal (see: March 2023 SVB event).