Riccardo
Wed Sep 11 2024
|
6 answers
1109
How do stablecoins stay at $1?
How exactly does a stablecoin maintain its value at $1, despite the volatility of the cryptocurrency market? Are there any specific mechanisms in place to ensure that the stablecoin's price remains stable and does not fluctuate significantly? Are these mechanisms transparent, and can they be trusted to keep the value of the stablecoin stable over time?
HanbokGlamourQueen
Sun Jun 16 2024
|
6 answers
1816
How does USDC stay at $1?
Could you please elaborate on how USDC maintains its pegged value of $1? I'm interested in understanding the mechanisms behind its stability and what factors contribute to keeping it at this fixed price. Could you explain the role of collateralization and the role of the issuer in maintaining this stability? Additionally, how does the market demand and supply affect USDC's price? I'm also curious about any regulatory frameworks or audits that might be involved in ensuring the stability of USDC. Could you provide some insights into these aspects? Thank you for your time and explanation.
