Crypto-collateralized stablecoins are digital coins that aim to stay stable in price, usually close to $1, but they are backed by other cryptocurrencies instead of cash 🪙⚖️. To handle crypto price swings, they are often over-collateralized, meaning more value is locked than the stablecoin issued 🔒📊.
For example👉 if you lock $150 worth of crypto, you may mint $100 of stablecoins👈 This extra buffer helps protect the system during market drops 📉🛡️. Smart contracts manage everything automatically, removing the need for banks or middlemen 🤖⛓️.
These stablecoins support DeFi lending, trading, and payments, giving users stability while staying decentralized 🌍✨. They are not perfect, but they show how crypto can create trust using code, transparency, and community belief 💡🚀✅
