Stablecoins

Stable Unit Of Accounting

Overview

Stablecoins are tokens which are designed to maintain a fixed peg against a particular value reference. At present, the most popular stablecoins (USDT, USDC, DAI) are pegged to the USD due to its status as a global reserve currency but this is likely to change with increasingly global adoption of crypto (EURC, XSGD, IDRT).

Stablecoins are usually minted/burned based on a collateralisation ratio of a basket of assets. These assets determine the trust assumptions of the stablecoin and can range from fiat/assets being held in a tradFi account (USDC, USDT, PAXG) or crypto assets/tokens (DAI, TUSD, FRAX). Stablecoin protocols are able to set a target collateralisation ratios in order to drive capital efficiency.

As a stable unit of accounting, stablecoins facilitate liquidity flows due to the intuitive nature of the asset that it is pegged against. Put simply, stablecoin users have a stable point of reference against which they can value their trades or actions on the chain.

Trade with your preferred stablecoins

KyberSwap enables you to easily trade your favorite stablecoins by adding them to the KyberSwap Interface.

Traders

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