Recently, the death spiral of UST and LUNA was a big shock, and many newbies may have concerns about the risk of depeg other stablecoins, here we briefly explain.
Crypto stablecoins are divided into three main categories.
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Centralized fiat-backed stablecoins, such as USDT, USDC, BUSD
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Decentralized, over-collateralized stablecoins, such as DAI
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Algorithmic stablecoins, such as UST, FRAX
For centralized fiat-backed stablecoins, the only risk may be the issuer's acceptance, as USDT has historically been off-anchor for brief periods, but has been able to return to anchor pricing quickly. Currently, compliant stablecoins like USDC are