What is a Stablecoin?
A stablecoin is a crypto coin that tries to stay at a fixed price, usually $1.
Example:
$USDT ≈ $1
$USDC ≈ $1
$DAI ≈ $1
This fixed price is called a peg.
What is a “Peg”?
A peg means the coin is tied to something stable, like the US dollar.
So when people say:
“$USDT is pegged to $1”
It means:
👉 1 USDT should always be equal to 1 USD
What is Depeg?
When a stablecoin does not stay at its fixed price, it is called depeg.
Example:
If USDT becomes $0.90 or $1.10
That means it has depegged.
This is dangerous because people expect stablecoins to stay stable.