<center>![Stablecoin.jfif](https://files.peakd.com/file/peakd-hive/rob23/242hqrQbDwJqoU1s1TAVPnzDd5kxcbfGhiai57NPnTF2FViad5txTjpHUbWBGgVxBLtyJ)</center>

# What They Are:

Stablecoins are essentially attempts to rectify the issue of volatility in the cryptocurrency ecosystem for investors. These coins are generally pegged to a fiat or reserve currency and maintain a very tight value range as a result of that. 

There are stablecoins that are backed by fiat currency and some that are collateralized by cryptocurrency. The result is that they are tokens that are shielded from the risk of massive price swings in the crypto market (that we see rather often) and can be seen as a safe store of value.

# Top Stablecoins:

The top five stablecoins by overall market-cap are the following:

- UST - A US dollar peg with a market cap of 1.83 billion USD
- DAI - A crypto collateralized stablecoin with a market cap of 3.59 billion USD
- BUSD - Binance's stablecoin with a market cap of 5.4 billion USD
- USDC - A US dollar peg with a market cap of 11.31 billion USD
- USDT - A US dollar peg with a market cap of 39.74 billion USD

*The stablecoin that is best to use will depend on your specific investing goals and where you will be investing. Always do your own research and don't choose on market cap alone!*

# Why Use Them?

The reasons to use stablecoins often fall within a few different categories.

- Risk Management: If you are looking to create some stability in your cryptocurrency portfolio, get yourself some stablecoins (NFA). You keep your crypto ready to fire if you see a price level on another coin that you like without losing any value or creating any risk for yourself (NFA).

- Yield Farming: Stablecoins can be used to provide collateral for yield farming protocols like PancakeSwap, Harvest Finance, or Goose Finance. It can also be used to provide liquidity on sites such as Uniswap in order to receive passive income from fees.

- Optimal Lending/Interest Rates: A lot of centralized exchanges offer great interest rates if you lend them your stablecoins. When comparing a rate that ranges from 3-10% on these exchanges to the .002% interest rate your bank is giving on your savings, it becomes quite clear why you should be storing your savings in stablecoins.

# Use Case In Our Ecosystem:

<center>![Cub token.png](https://i.imgur.com/YyBjQSr.png)</center>
As mentioned before, a huge use case of stablecoins is to be used as capital for yield farming. On our own DeFi platform, Cub Finance, we see the farms tab using BUSD, USDT, and DAI in various forms. I also expect we will see those tokens involved in the new Kingdom's function that will be coming to the site soon.

These tokens are shielded from price swings, so if our APR holds steady, you should know about how much Cub you will be yield farming as a result of that stability.

I also believe that we will see something happening soon with our stablecoin the Hive-Backed Dollar. I think that it will begin to level out in price as there is a lot of work going into that. Perhaps we may soon see an addition to the Cub website of Hive or HBD to further cement the connection between Leo Finance and the overall Hive ecosystem.

### If you enjoyed this article please feel free to reblog/rehive!

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@mariosfame gif once again, I love it
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**Who I am:**
My name is Rob and I am a college student doing my best to get involved in the crypto world. I have enjoyed blogging thus far and thank you for reading my article! Give me a follow and let’s build the community together through consistent engagement.

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