• Stablecoins
• Lending and Borrowing
• Liquidity Pools
• Decentralized Exchanges (DEXs)

Stablecoins

Cryptocurrencies designed to maintain a stable value by pegging to another asset (usually fiat currencies like USD or commodity such as gold or another cryptocurrency).

• Alternative to high volatility of cryptocurrencies.
• Bridge the gap between fiat currency and cryptocurrency.
• Medium of exchange
• First appeared in 2014 combines technological benefits of blockchain — such as transparency, efficiency, and programmability — with the financial stability needed for widespread adoption.

Why Stablecoins are important ?

Though Bitcoin is the most popular cryptocurrency, it tends to suffer from high volatility in its price, or exchange rate. All this volatility can be great for traders, but it turns routine transactions like purchases into risky speculation for the buyer and seller.

Use cases for stablecoins

• On-ramp to DeFi
• Payments and p2p transactions
• Cross-border payments and remittances
• Foreign exchange (FX) and trade finance
• Store of value among economic instability or inflation