Ledger LandISSUE #51 of 90

stablecoins · usdc · dai · usdt

BlockyVSDouble-Spend Dan

Blocky saysStablecoins peg to a stable value (usually $1) — the on-chain dollar.

Volatile crypto is bad for payments and savings, so stablecoins hold a steady value. Types: fiat-backed (USDC, USDT — a company holds real dollars/reserves), crypto-collateralized (DAI — over-collateralized by crypto), and algorithmic (supply adjusts to hold the peg). They're the settlement layer of DeFi, but each type carries its own risk: custodian trust, collateral crashes, or peg failure.

Power-ups you unlock

Peg to a stable value (~$1)
Fiat-backed (USDC/USDT), crypto-backed (DAI), algorithmic
The settlement layer of DeFi
Each type has distinct peg risks

Double-Spend Dan attacks — common mistakes

Assuming all stablecoins are equally safe
Ignoring reserve/custodian risk for fiat-backed
Trusting algorithmic pegs blindly

Boss battleMatch USDC, DAI, and an algo-stable to their backing model.

Example code

<!doctype html><html><head><meta charset="utf-8"></head>
<body style="background:#06040d;color:#e6e0ff;font-family:monospace;padding:20px"><pre>USDC → fiat-backed (reserves)
DAI  → crypto over-collateralized
algo → supply adjusts to hold peg (riskier)</pre></body></html>

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