Welcome to the Stablehouse blog!
Stablecoins are a subtype of cryptocurrencies that have their value pegged to a price-stable asset such as fiat currencies, commodities, or other digital assets. Stablecoin projects achieve this through ensuring that every token issued represents a specified quantity of the underlying asset being held in custody or on-chain. Regular or real-time auditing helps these projects to prove to users that no double spend or on-chain rehypothecation takes place.
While stablecoins have existed for a number of years, their prominence is quite recent and born out of concern for other cryptocurrencies’ price volatility. After the ICO boom of 2018, which left investors holding vast amounts of worthless altcoins, stablecoins emerged as an attractive option because of their tangible peg to a more reliable asset. …