Stablecoins: A Bridge Between TradFi and DeFi
Since cryptocurrencies are traded freely without third-party administration, the main concern around adoption is volatility. Stablecoins bring a middle ground between traditional and decentralized finance since they are tied to fiat currencies like the US dollar, Euro, British pound, etc. These stablecoins make it possible to take advantage of the potential benefits from cryptocurrencies while still giving users control over their money; they do this by providing an intermediary in case the value of the cryptocurrency falls below the value of the fiat currency with which it’s pegged.
Types of Stablecoins