ELI5 Stable Coins - how do they work?
What are stable coins and why do we even need them? What’s the mechanism that makes them stable? What are the different types of stable coin? How did the algorithmic stable coin Terra work, and why did it unravel? ... we explain like I'm five...
ELI5 Explain Like I'm 5: Bite sized answers to stuff you should know about - in a mini podcast
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Show Notes
What are stable coins and why do we even need them? What’s the mechanism that makes them stable? What are the different types of stable coin? How did the algorithmic stable coin Terra work, and why did it unravel?
... we explain like I'm five
Thank you to the r/explainlikeimfive community and in particular the following users whose questions and comments formed the basis of this discussion: fihaal42, tehwildman_, enough_blueberry_549, sleep_naked, red_atnight and lawproud492.
Some extra resources:
https://medium.com/@lawrenceg/what-are-stablecoins-and-why-do-we-need-them-db83c85b86b
https://multicoin.capital/2018/01/17/an-overview-of-stablecoins/
https://en.wikipedia.org/wiki/Stablecoin
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