🚨💥🚨Stablecoins are called "stable" because they are designed to maintain a stable value relative to a reference asset, usually a fiat currency like the US dollar. This stability is achieved through various mechanisms, such as:$USDC $

1. _Collateralization_: The stablecoin is backed by a reserve of assets, like US dollars or other cryptocurrencies, to maintain its value.

3. _Pegging_: The stablecoin is pegged to the value of another asset, like the US dollar, to maintain a 1:1 ratio.

The goal of stablecoins is to provide a cryptocurrency that:

1. _Reduces volatility_: Stablecoins aim to minimize price fluctuations, making them more suitable for everyday transactions.

2. _Facilitates adoption_: By providing a stable store of value, stablecoins can increase confidence in cryptocurrencies and encourage wider adoption.

3. _Enables use cases_: Stablecoins can be used for various purposes, such as cross-border payments, e-commerce, and decentralized finance (DeFi) applications.

Examples of stablecoins include USDT (Tether), USDC (USD Coin), and DAI (Dai).