In this episode, we discuss the different types of stable coins and their economics and risks at a high level. Specifically, we discuss what one can call “collateralised stable coins” like USDC or USDT which are collateralised with the asset in question (eg USD coin with USD cash), and “cross-collateralised stable coins” like DAI which are collateralised with another asset (eg USD coin with ETH) or “algorithmic stable coins” which have no collateral portfolio and that are ultimately backed (or not) by the protocol value.
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