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Crypto-Backed Stablecoin

A stablecoin supported by cryptocurrency collateral, often using overcollateralization and liquidation mechanisms.

Definition

A stablecoin supported by cryptocurrency collateral, often using overcollateralization and liquidation mechanisms.

Why it matters

Stablecoin concepts explain mechanisms designed to maintain relatively stable value and liquidity.
Canonical knowledge ID: glossary:crypto-backed-stablecoin