Stablecoin
Also known as stable coin
A stablecoin is a cryptocurrency designed to keep a steady value, most often one US dollar. Fiat-backed stablecoins hold reserves such as cash and short-term government debt; crypto-backed ones are secured by overcollateralised digital assets; and algorithmic designs try to hold their peg through supply adjustments. Stablecoins are widely used for trading, payments and DeFi. Their stability depends on the quality, transparency and redeemability of whatever backs them.