What is a stable coin?

  1. Fiat currency collateral model. Deposit 1:1 with fiat currency as collateral to ensure the stability of digital assets.
  2. Digital asset over-collateralization model. Use cryptocurrency as over-collateralization then mint out stablecoins.
  3. Algorithmic mechanism. Without collateral, these stablecoins are anchored by algorithmic mechanisms such as minting and burning.
Source: TokenInsight

Fiat currency collateral model

Source: Messari

Over-collateralization

Source: Messari

Algorithmic Stablecoins

Source: Messari

About GateChain

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store