What it means
A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves.
You can send a stablecoin to anyone in the world in seconds, at any hour, like a message. The issuer holds cash and similar assets so the tokens can be redeemed one for one.
How it works
Defied holds two: USDC for dollars and EURC for euros, both issued by Circle.
Related terms
| Term | What it means |
|---|---|
| USDC | A dollar stablecoin issued by Circle: one USDC is meant to be worth one US dollar, backed by dollar reserves. |
| EURC | A euro stablecoin issued by Circle: one EURC is meant to be worth one euro, backed by euro reserves. |
| Depeg | When a stablecoin's price drifts away from the currency it tracks, for example a digital dollar trading at 0.97 dollars. |
This glossary explains terms in general. It isn't investment, tax or legal advice.