Stablecoins fall into fiat-backed (USDC, USDT), crypto-collateralised (DAI), and algorithmic categories. Algorithmic stablecoins have a poor track record of maintaining pegs during stress.
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Open Decision Lab →Frequently asked questions
Are stablecoins actually stable?
The best-managed fiat-backed coins have maintained peg through severe stress. Algorithmic designs have repeatedly failed.