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Stablecoin Finance

Definition

Stablecoin Finance refers to the segment of the digital asset market focused on financial activities and products utilizing stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the US dollar, by holding reserves or employing algorithmic mechanisms. This financial ecosystem includes lending, borrowing, yield generation, and trading activities that leverage the price stability of stablecoins to mitigate the volatility associated with other digital assets. It provides a reliable medium for value transfer and capital deployment within the decentralized finance (DeFi) landscape.