What Are the Different Types of Stablecoins and How Do They Work?

A stablecoin can look deceptively simple on a trading screen. US$1 goes in, US$1 comes out. Yet two tokens sitting at almost the same price can rely on entirely different machinery to keep it there.One may be backed by cash and short-term government securities held by an issuer. Another may lock crypto assets into smart contracts and require more collateral than the value of the stablecoins created. A third may try to defend its peg through programmed supply changes and market incentives. There