Stablecoins
Digital money for everyday use
Why stablecoins?
Stablecoins are cryptocurrencies without the volatility. They share a lot of the same powers as ETH but their value is steady, more like a traditional currency. So you have access to stable money that you can use on Ethereum. How stablecoins get their stability
Stablecoins are global, and can be sent over the internet. They're easy to receive or send once you have an Ethereum account.
Demand for stablecoins is high, so you can earn interest for lending yours. Make sure you're aware of the risks before lending.
Stablecoins are exchangeable for ETH and other Ethereum tokens. Lots of dapps rely on stablecoins.
Stablecoins are secured by cryptography. No one can forge transactions on your behalf.
The infamous Bitcoin pizza
In 2010, someone bought 2 pizzas for 10,000 bitcoin. At the time these were worth ~$41 USD. In todayโs market thatโs millions of dollars. There are many similar regretful transactions in Ethereumโs history. Stablecoins solve this problem, so you can enjoy your pizza and hold on to your ETH.
Find a stablecoin
There are hundreds of stablecoins available. Here are some to help you get started. If you're new to Ethereum, we recommend doing some research first.
Editors' choices
These are probably the best-known examples of stablecoins right now and the coins we've found useful when using dapps.
Dai
Dai is probably the most famous decentralized stablecoin. Its value is roughly a dollar and itโs accepted widely across dapps.
USDC
USDc is probably the most famous fiat-backed stablecoin. Its value is roughly a dollar and itโs backed by Circle and Coinbase.
Top stablecoins by market capitalisation
Market capitalisation is the total number of tokens that exist multiplied by the value per token. This list is dynamic and the projects listed here are not necessarily endorsed by the ethereum.org team.
How to get stablecoins
Swap
You can pick up most stablecoins on decentralized exchanges. So you can swap any tokens you might have for a stablecoin you want.
Buy
A lot of exchanges and wallets let you buy stablecoins directly. Geographical restrictions will apply.
Earn
You can earn stablecoins by working on projects within the Ethereum ecosystem.
Borrow
You can borrow some stablecoins by using crypto as collateral, which you have to pay back.
Use your stablecoins
Check out Ethereumโs dapps โ stablecoins are often more useful for everyday transactions.
Save with stablecoins
Stablecoins often have an above-average interest rate because thereโs a lot of demand for borrowing them. There are dapps that let you earn interest on your stablecoins in real time by depositing them into a lending pool. Just like in the banking world, you're supplying tokens for borrowers but you can withdraw your tokens and your interest at any time.
Interest-earning dapps
Put your stablecoin savings to good use and earn some interest. Like everything in crypto, the predicted Annual Percentage Yields (APY) can change day-to-day dependent on real-time supply/demand.
Aave
Markets for lots of stablecoins, including Dai, USDC, TUSD, USDT, and more.
Compound
Lend stablecoins and earn interest and $COMP, Compound's own token.
dYdX
A trading platform where you can earn interest on your Dai and USDC.
Oasis
An app designed for saving Dai.
Always do your own research
Ethereum is a new technology and most applications are new. Make sure you're aware of the risk and only deposit what you can afford to lose.How they work: types of stablecoin
Fiat backed
Pros
- Safe against crypto volatility.
- Changes in price are minimal.
Cons
- Centralized โ someone must issue the tokens.
- Requires auditing to ensure company has sufficient reserves.
Crypto backed
Precious metals
