Stablecoin is a type of digital currency whose value is tied to another asset: gold, oil, fiat currency, etc. That is, if the stablecoin is tied to the US dollar, then for one stable you will receive one dollar.
According to the Glassnode, the most in-demand stable list includes:
🪙 USD Coin (USDC). On the market since 2018. Backed by USD on a one-to-one basis. The Center consortium made efforts to create this coin.
🪙 Tether (USDT). On the market since 2015. Backed by USD on a one-to-one basis. Tether is an open-source protocol that interacts with the blockchain. Tokens appear and disappear as their equivalent enters or leaves the company’s account
🪙 BUSD. Used since 2019. Traded at a one-to-one ratio with the US dollar. The coin is backed by fiat funds held in Paxos Trust Company accounts. One of the main principles of BUSD’s existence is complete transparency of token creation and burning, as well as the maximum speed of these processes.
🪙 Dai. Stablecoin has been known since 2017. Its ratio to the US dollar is one-to-one. This value is supported by automatic smart contracts with Ethereum (ETH). Due to it being managed by a decentralised organisation, the decision to issue new tokens or burn existing ones is essentially made by the owners of these same tokens.
🪙 TrueUSD (TUSD). On the market since 2018. Backed by USD on a one-to-one basis. Reserves aimed at providing a stablecoin are located in third-party accounts, i.e. in escrow in banksÂ