What Are Stablecoins?

Stablecoins are meant to be a digital currency that has a fixed unit of value rather than a free floating market price like Bitcoin. There has been a lot of drama, controversy and confusion about stablecoins this year so we are going to break down the basics and talk about what they are, how they work, and the purpose they serve on web3.

Research & Attribution:
https://www.wsj.com/articles/crash-of-terrausd-shakes-crypto-there-was-a-run-on-the-bank-11652371839
https://www.ft.com/content/39681aa2-aa01-4d60-b399-8ecb236c627e
https://www.coindesk.com/learn/algorithmic-stablecoins-what-they-are-and-how-they-can-go-terribly-wrong/

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Web3 Working Group is a nonprofit organization in the process of applying for 501(c)(3) status. Our purpose is to educate about web3 infrastructure and how it's distinct from financial services in the cryptocurrency industry. We educate about how web3 infrastructure will decentralize the web and permanently restore user control of cyberspace, replacing centralized control with transparent and permissionless protocols through incentives aligned with users. See more at www.web3wg.org