Stablecoins aim to bring stability to the volatile world of crypto — but how do they actually work? In this episode, we break down the core mechanics behind modern stablecoin designs and examine how they strive to maintain consistent value in a decentralized economy.

We explore:

• The different types of pegs: fiat, commodity, index-based, and more

• Collateral strategies — from fully backed to algorithmic and uncollateralized models

• Key mechanisms for maintaining price stability (minting, redemption, dual-coin systems)

• The crucial role of oracles and governance in ensuring transparency and security

• Real-world case studies, from USDC and Dai to Terra and Ampleforth

Whether you're a crypto newcomer or a DeFi veteran, this episode offers a clear framework for understanding what separates successful stablecoins from the rest — and where the space might go next.