stablecoins

Categories/Properties

Relative Stability

Pegged/Anchored or FLoating

Pegged Stablecoins

Examples of Pegged Stablecoin: USDC, UDST (anchored to US Dollars)

Floating Stablecoins

Floating stablecoin has its buying power that stays relatively the same over time, but is not tied down to any other asset

Stability Method

Mechanism that keeps the coin stable, it revolves around minting and burning the stablecoins.

Governed

Centralized body that controls the minting and burning of the coins (governments, organizations...)

Algorithmic

Governed by a permissionless algorithm with no human intervention, a set of autonomous code dictates the minting/burning.

Collateral Type

How the stablecoin is backed (what is giving it value)

USDT --> US Dollars

DAI --> Backed by ETH...

Endogenous

If the stablecoin fails, the underlying collateral also fails.

Endogenous collateral originates from inside the protocol

Example: UST (Luna)

Exogenous

If the stablecoin fails, the underlying collateral survives.

Exogenous collateral originates from inside the protocol

Example: USDC, DAI