Stable Coin Factors

All stable coins are "designed" to maintain "fixed" value over time, but they're not all the same.

First, what is it pegged to? Most commonly, they're pegged to a specific paper fiat currency. Some are working towards pegging to a commodity as in gold or silver. Some are now even pegged to bitcoin.

Second, what is it built on? The digital coin itself is designed on a specific blockchain. blockchains possess different governance, consensus mechanisms (mining), and more. Examples of different blockchains are Ethereum, Solana, Ripple, or Stacks.

Very important.

These are just some factors to consider.

In the past, some stable coins have de-pegged and crashed. E.g. Luna. So, make sure you research.

Some questions to consider:

• What is it pegged to?
• How confident are you in what it has pegged to?
• What blockchain?
• How secure is that chain?
• What is the governance structure of that chain?
• Who custody's, what?
• How is supply issued?
• What visibility and control do certain party's or entities have...?
• Can it freely flow app to app, chain to chain?  
• KYC?