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Delving into Stablecoin Mechanisms: Price Anchoring and Collateralization

Delving into Stablecoin Mechanisms: Price Anchoring and Collateralization

December 3, 2025 Category: Blog

Stablecoins, designed to hold a steady worth, rely on key fundamental concepts: price stability and collateralization. Pegging refers to the method by which the stablecoin’s rate is tied to a benchmark asset, typically the USD. This may be achieved through various approaches, ranging from over-collateralization with tokens to dynamic stabilizatio

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