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Exploring Stablecoin Systems: Value Stabilization and Collateralization

Exploring Stablecoin Systems: Value Stabilization and Collateralization

December 3, 2025 Category: Blog

Stablecoins, designed to maintain a steady value, rely on key core principles: price stability and collateralization. Value stabilization refers to the approach by which the stablecoin’s value is tied to a benchmark asset, typically the USD. This may be achieved through various techniques, ranging from over-collateralization with digital assets t

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