Stablecoins
Digital money for everyday use
Stablecoins are Ethereum tokens designed to stay at a fixed value, even when the price of ETH changes.
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 .
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 rely on stablecoins.
Stablecoins are secured by . 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 today’s market that’s millions of dollars. There are many similar regretful transactions in Ethereum’s 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 it’s accepted widely across dapps.
USDC
USDC is probably the most famous fiat-backed stablecoin. Its value is roughly a dollar and it’s 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.
| Currency | Market capitalization | Collateral type | ↗ |
|---|---|---|---|
 Tether | $123,595,589,260 | Fiat | Go to Tether |
 USDC | $36,906,712,676 | Fiat | Go to USDC |
 Dai | $3,343,564,307 | Crypto | Go to Dai |
 Frax | $647,644,763 | Algorithmic | Go to Frax |
 PAX Gold | $515,141,228 | Precious metals | Go to PAX Gold |
 TrueUSD | $494,894,337 | Fiat | Go to TrueUSD |
How to get stablecoins
Save with stablecoins
Stablecoins often have an above-average interest rate because there’s 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.
0.05%
The average rate paid by banks on basic, federally insured savings accounts, USA. Source(opens in a new tab)
How they work: types of stablecoin
Always do your own research
Algorithmic stablecoins are experimental technology. You should be aware of the risks before using them.Fiat backed
Pros
- Safe against crypto volatility.
- Changes in price are minimal.
Cons
- Centralized – someone must issue the tokens.
- Requires auditing to ensure company has sufficient reserves.
Example projects
Crypto backed
Precious metals
Algorithmic
Learn more about stablecoins
Dashboard & Education
Goto Stablecoins.wtf website(opens in a new tab)Stablecoins.wtfStablecoins.wtf offers a dashboard with historical market data, statistics, and educational content for the most prominent stablecoins.