Fiat-pegged Stablecoin
A digital asset tied 1:1 to a fiat currency, like USD or EUR, for price stability.
What is Fiat-pegged Stablecoin?
Fiat-pegged stablecoins are digital assets designed to maintain a 1:1 value with a fiat currency, such as the USD (e.g., USDT, USDC) or EUR (e.g., Stasis Euro). Backed by reserves of cash or cash-equivalent assets, these stablecoins ensure price stability, making them suitable for trading, payments, and DeFi applications. Their widespread adoption stems from their ability to combine blockchain’s transparency and efficiency with the stability of traditional currencies, appealing to users in regions with volatile economies or limited banking access.
Related Terms
Fiat
Government-issued currency not backed by a physical commodity, used as legal tender in digital asset trading.
Fraud Proof of Ethereum Rollup
A fraud proof in Ethereum rollups is an interactive on-chain challenge mechanism that disputes invalid off-chain transaction states in optimistic rollups, enforcing correctness through economic penalties.
Perpetual Futures
Also called Perpetual Swap, a derivative contract on a Perp DEX allowing traders to speculate on digital asset prices without an expiration date.
Liquidity Hook (Uniswap)
Uniswap liquidity hooks are external smart contracts in Uniswap v4 that customize liquidity addition and removal in pools, enabling developers to inject logic before or after these actions for enhanced DeFi features.
ZK-Rollup
A ZK-Rollup is a layer-2 scaling solution for Ethereum that processes transactions off-chain and uses zero-knowledge proofs to validate them, posting compact data to the main chain for security and finality.
Managed Anonymity
A privacy framework in CBDCs balancing user anonymity with regulatory traceability.