Beyond the Peg: An Analysis of Modern Stablecoin Ecosystems
Stablecoins have become a crucial component of the web3 ecosystem, serving as a bridge between traditional finance and the digital asset space. These digital tokens are designed to maintain a stable value relative to a reference asset, most commonly the US dollar. As the cryptocurrency market has grown and matured, stablecoins have emerged as essential tools for trading, remittances, and DeFi applications, offering users a way to mitigate the volatility inherent in many cryptocurrencies.