Basics · Beginner lesson · about 2 minutes
Stablecoins
Tokens designed to track a reference value, usually a currency.
The short answer
A stablecoin tries to keep a stable price through reserves, collateral, algorithms, or a combination. The mechanism and issuer determine the risks.
In plain English
A stablecoin tries to keep a stable price through reserves, collateral, algorithms, or a combination. The mechanism and issuer determine the risks.
The details differ by network and service, so use the linked sources and the project’s own documentation when a decision depends on current behavior.
What can go wrong
Read this before you act.
Stable does not mean risk-free. Reserves, redemption, smart contracts, regulation, and market liquidity can fail.
Check your understanding
A few questions. Not a test.
Pick an answer to see why it's right or wrong. There's no score to unlock.
Sources and corrections
This lesson is a starting point. The two sites below are good general places to learn more. Please tell us if something needs fixing.