Stablecoins offer stability and convenience in digital payments, bridging digital assets and daily transactions.

They are pegged to reserve assets like fiat currencies or commodities, offering stability compared to volatile cryptocurrencies.

There are three main types: algorithmic, fiat-collateralised, and crypto-collateralised.

Algorithmic stablecoins use smart contracts to manage stability, while fiat-collateralised ones are linked to traditional currencies.

Crypto-collateralised stablecoins, though decentralised, carry crypto market volatility.