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 …
Read moreHow does stablecoin make money?
Centralised stablecoins, like USDT (Tether) and USDC, make money through lending and investing , in a manner similar to traditional banks. They do these through fractional reserve banking, where only a fraction of deposits are backed by physical cash on hand that can be withdrawn by investors.
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