A cryptocurrency designed to maintain a steady value by being pegged to a real-world asset, usually the US dollar, so 1 token always equals roughly $1.
Think of it like a digital dollar bill — it gives you the benefits of crypto (fast transfers, 24/7 access) without the wild price swings.
Stablecoins are essential for parking your money in crypto without risking value drops, and they're commonly used for earning interest in DeFi.
Watch out for stablecoins that aren't fully backed by real assets — some have 'de-pegged' and lost their $1 value, causing massive losses for holders.
Decentralized Finance — financial services like lending, borrowing, and earning interest, built on blockchain and available to anyone without needing a bank.
A shared pot of crypto tokens locked in a smart contract that enables trading on a decentralized exchange — users deposit tokens and earn fees in return.
Annual Percentage Yield — the total return you earn on a crypto deposit or investment over one year, including the effect of compounding.
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