A collateralized stablecoin or CSC is a type of cryptocurrency pegged to a stable asset, such as the US dollar, to reduce volatility and maintain a stable value.
This is accomplished by holding a reserve of the stable asset that the stablecoin is pegged to and using it to buy back and burn tokens when the price fluctuates too much.
This helps to keep the value of the stablecoin stable and ensures that it can be used as a reliable form of digital currency.
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