Alien base – A stablecoin is a cryptocurrency whose value is pegged to a certain currency, such as the U.S.

A stablecoin is a cryptocurrency whose value is pegged to a certain currency, such as the U.S. Dollar or the Euro, or a commodity such as gold. While the price of most cryptocurrencies like Bitcoin or Ethereum fluctuates, a stablecoin gives its users the possibility to trade and hold value on the blockchain without being subjected to market volatility.

How does a stablecoin work?
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The stability of a stablecoin is ensured by the reserve backing it. When a new stablecoin is issued on the blockchain, assets are added in its reserves. Stablecoins are backed in various ways. Most are backed by fiat, meaning there’s 1 dollar in reserve for each stablecoin. With Angle Protocol, USDA and EURA are over-collateralized: there’s more value in assets in the reserves than the stablecoins in circulation. This equity buffer further enhances security.

What are the different types of stablecoins?
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There are various stablecoins pegged to different underlying assets, including the Dollar, Euro, Yuan, gold, silver, and more. Other differentiation criteria include the type of assets in the stablecoin reserves, like fiat currencies, cryptocurrencies, or real-world assets. Furthermore, variations in functioning, whether centralized, decentralized, or algorithmic, also distinguish stablecoins. Additionally, certain stablecoins like USDA and EURA by Angle Protocol offer the potential to generate yield for their users.

Angle’s stablecoins stand out as complete and reliable stablecoins, supported by a robust and innovative Price Stability Module. USDA and EURA are over-collateralized, decentralized and transparent, enabling anyone to verify their reserves in real-time. Furthermore, USDA and EURA generate yield for their users and facilitates competitive pricing when exchanging USD for Euro onchain.

How to get Angle’s stablecoins?
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Users can get USDA, Angle’s Dollar stablecoin, and EURA, Angle’s Euro stablecoin, by swapping their assets on the Angle app or decentralized exchanges (DEXs) like 1inch. It is also possible to acquire USDA and EURA by borrowing them against a variety of collaterals.