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What is a Stablecoin and some design approaches for it?

Stablecoins are a sort of cryptocurrency in which the digital asset’s value is expected to be tied to another asset, such as fiat money, exchange-traded commodities, or another cryptocurrency. In principle, 1:1 backing by a reference asset might cause a stablecoin’s value to mirror the value of the peg, but issuers have not been proven to keep significant reserves to sustain a stable value in practice.