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Stable Value

Stablecoins

Digital money for everyday use

Stablecoins are Paxeer tokens designed to stay at a fixed value, even when the price of PAX changes. They share a lot of the same powers as PAX but their value is steady, more like a traditional currency.

Get stablecoins How they work

Why stablecoins?

PAX, like Bitcoin, has a volatile price because it's new technology. So you may not want to spend it regularly. Stablecoins mirror the value of traditional currencies to give you access to stable money that you can use on Paxeer.

Global

Stablecoins are global, and can be sent over the internet. They're easy to receive or send once you have a Paxeer account.

Earn interest

Demand for stablecoins is high, so you can earn interest for lending yours. Make sure you're aware of the risks before lending.

Exchangeable

Stablecoins are exchangeable for PAX and other Paxeer tokens. Lots of dapps rely on stablecoins.

Crypto-secured

Stablecoins are secured by cryptography. No one can forge transactions on your behalf.

How they work: types of stablecoin

Stablecoins get their stability in different ways.

Fiat backed

Basically an IOU for a traditional fiat currency (usually dollars). You use your fiat currency to purchase a stablecoin that you can later cash-in and redeem for your original currency.

Pros

  • Safe against crypto volatility
  • Changes in price are minimal

Cons

  • Centralized – someone must issue the tokens
  • Requires auditing to ensure company has sufficient reserves

Crypto backed

These stablecoins are backed by other crypto assets, like PAX or ETH. Their price depends on the value of the underlying asset (or collateral), which can be volatile. Because PAX's value can fluctuate, these stablecoins are overcollateralized to ensure the price stays as stable as possible.

Pros

  • Transparent and fully decentralized
  • Quick to turn into other crypto assets
  • No external custodians – all assets are controlled by Paxeer accounts

Cons

  • Less stable than fiat-backed stablecoins
  • You need to keep an eye on the value of the crypto collateral

Algorithmic

These stablecoins aren't backed by any other asset. Instead an algorithm will sell tokens if the price falls below the desired value and supply tokens if the value goes beyond the desired amount. Because the number of these tokens in circulation changes regularly, the number of tokens you own will change, but will always reflect your share.

Pros

  • No collateral needed
  • Controlled by a public algorithm

Cons

  • You need to trust (or be able to read) the algorithm
  • Your balance of coins will change based on total supply

How to get stablecoins

There are hundreds of stablecoins available. Here are some ways to get started.

Swap

Recommended

You can pick up most stablecoins on decentralized exchanges. So you can swap any tokens you might have for a stablecoin you want.

What you'll need

  • A Paxeer wallet
  • PAX (to pay for the swap)

Buy

A lot of exchanges and wallets let you buy stablecoins directly. Geographical restrictions will apply.

What you'll need

  • An account with an exchange or wallet

Earn

You can earn stablecoins by working on projects within the Paxeer ecosystem.

What you'll need

  • A Paxeer wallet to receive your earned stablecoins

Borrow

You can borrow some stablecoins by using crypto as collateral, which you have to pay back.

What you'll need

  • A Paxeer wallet
  • PAX for collateral and/or transaction fees

Editor's choices

Fiat backed

USDC

US-regulated fiat-backed stablecoin issued by Circle

Fiat backed

USDT

Largest fiat-backed stablecoin by market cap, issued by Tether

Crypto backed

DAI

Decentralized stablecoin backed by crypto collateral

Save with stablecoins

Stablecoins often have an above-average interest rate because there's a lot of demand for borrowing them. There are dapps that let you earn interest on your stablecoins in real time by depositing them into a lending pool. Just like in the banking world, you're supplying tokens for borrowers but you can withdraw your tokens and your interest at any time.

Put your stablecoin savings to good use and earn some interest. Like everything in crypto, the predicted Annual Percentage Yields (APY) can change day-to-day dependent on real-time supply/demand.

Always do your own research

Paxeer is a new technology and most applications are new. Make sure you're aware of the risk and only deposit what you can afford to lose.

Use your stablecoins

Check out Paxeer's dapps – stablecoins are often more useful for everyday transactions.

Explore dapps