Скачать или смотреть How Stablecoins Are Pegged to Fiat Currencies for Stability Explained in one Minute

In this one-minute video, we discuss how stablecoins like Tether, Dai, and USD Coin maintain their stability by being pegged to fiat currencies like USD or Euro. Being pegged means linking the cryptocurrency to the fiat currency at a 1:1 ratio, making 1 USD equal to 1 Tether.

The stability of Tether is maintained through a mechanism known as "backing." When a Tether is bought, an equal value of USD is added to it, and when it is sold, an equal value of USD is exchanged. This mechanism ensures that the value of Tether remains stable even in times of market volatility.

To maintain stability, tokens are burned when the demand decreases, and more tokens are issued when the demand increases. This ensures that the supply of stablecoins remains in balance with the demand, thereby maintaining their stability.

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#Tags: #Stablecoins #Pegged #FiatCurrencies #Tether #Dai #USDcoin #Backing #MarketVolatility #SupplyandDemand #Cryptocurrencies #TechnicalVideos