How to make stablecoin

It’s true that stablecoins — whether collateralized or algorithmic — are less secure than U.S.-regulated bank accounts and money market funds . But from a stability perspective, that’s not the point. The bank-run risk for stablecoins is largely independent of the regulated economy, so it is a diversifying risk.

7 best stablecoins list:

How do Stablecoins Make Money? Centralised stablecoins, like USDT (Tether) and USDC, make money through lending and investing , in a manner similar to traditional banks.

While predictable cryptocurrency may sound like an oxymoron, stablecoins – like their name suggests – were designed to counter crypto’s hallmark volatility and provide a convenient way for crypto traders to preserve their fiat value without having to cash out of the market and to allow users to pay for everyday goods …

There are four primary stablecoin types, identifiable by their underlying collateral structure: fiat-backed, crypto-backed, commodity-backed, and algorithmic .