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Glossary Term

Stablecoin

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its price to a reserve asset—such as the US dollar or other fiat currency—making it a critical tool for payments, trading, and DeFi activities in the Solana ecosystem.

Beginner
General
Crypto Terminology

Stablecoin: what is it?

Examples

  • 1

    Swapping SOL or other tokens for USDC on a Solana DEX to avoid volatility.

  • 2

    Providing USDT as collateral to borrow assets in a lending protocol like Solend.

  • 3

    Receiving stablecoin payments for services or salaries via a Solana wallet.

  • 4

    Participating in yield farming or liquidity pools using stablecoin pairs.

Common Use Cases

Trading and portfolio management to hedge volatility.
Storing value securely during market uncertainty.
Facilitating low-fee, fast remittances and cross-border payments.
Seamless access to DeFi lending, borrowing, and yield opportunities.

Pro Tips

💡

Always verify stablecoin reserves and audits—fiat-collateralized coins should publish attestation of reserves.

💡

Prefer reputable, widely adopted stablecoins like USDC and USDT on Solana for maximum liquidity and compatibility.

Frequently Asked Questions

Related Terms

Bitcoin Halving
WAGMI
Vaporware
Utility Token
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