USDC, USDT, and Fiat-Backed Designs

This lesson is for enrolled learners

The concept A fiat-backed stablecoin is, at its core, a claim on an off-chain custodian: the issuer takes in dollars, holds them (or short-term instruments backed by dollars) in reserve, and mints an equivalent amount of on-chain tokens; redemption runs the process in reverse. The token's stability depends entirely on the market's confidence that redemption will actually work at 1:1,……

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