A stablecoin is a type of cryptocurrency that is designed to maintain a stable value relative to a particular asset or a basket of assets, such as fiat currencies, commodities, or cryptocurrencies. This stability is achieved through various mechanisms, such as pegging the stablecoin to a specific asset, using algorithms to adjust the supply of the stablecoin, or collateralizing the stablecoin with other assets. Stablecoins are often used as a means of storing value or facilitating transactions in cryptocurrency without being affected by the volatility of other cryptocurrencies.