Definition ∞ Stablecoin Pricing refers to the methods and processes employed to consistently maintain the value of a stablecoin pegged to a target asset, typically a fiat currency like the US dollar. This involves various underlying mechanisms, including collateralization, algorithmic adjustments, or a hybrid approach. It ensures the stablecoin’s purchasing power.
Context ∞ Accurate and reliable stablecoin pricing is fundamental to their utility as a medium of exchange and a stable store of value within the digital asset economy. Deviations from their intended peg often trigger significant market events and regulatory scrutiny, highlighting the importance of robust pricing mechanisms. News frequently covers stablecoin de-pegging events and the stability of their underlying systems.
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