DeFi

How Stablecoins Work: A Comprehensive Guide to Stability in Crypto Stablecoins are cryptocurrencies designed to maintain a consistent value, typically pegged to fiat currencies like the US dollar, commodities, or other assets, by using mechanisms such as reserves, collateral, or algorithms.[1][4] Unlike volatile cryptocurrencies like Bitcoin, they provide price stability for trading, payments, and DeFi applications while leveraging blockchain’s speed and transparency.[3][6] This detailed guide explores the inner workings of stablecoins, their types, mechanisms, real-world examples, risks, and regulatory landscape. Whether you’re a crypto newbie or seasoned trader, understanding stablecoins is key to navigating the digital asset world. ...

Introduction Automated Market Makers (AMMs) are the liquidity engines powering most decentralized exchanges (DEXs). Instead of relying on traditional order books and human market makers, AMMs use deterministic formulas—called bonding curves—to continuously quote buy and sell prices for assets. This design unlocks 24/7 liquidity, permissionless market creation, and composability across decentralized finance (DeFi). Yet AMMs also introduce new mechanics and risks: slippage, impermanent loss, MEV (maximal extractable value), and complex design trade-offs. ...