Crypto-Backed Stablecoin

Crypto-backed stablecoins belong to one of the four main types of stablecoins. These stablecoins are typically overcollateralized by an underlying cryptocurrency asset to mitigate the price volatility of cryptocurrencies. Issued on the blockchain, crypto-backed stablecoins allow users to lock their cryptocurrencies in a smart contract to obtain stablecoins. Users can then withdraw their original collateral by repaying the stablecoins back into the same smart contract.