Understanding Supply and Demand in the World of Stablecoins
Dive deep into the fundamental forces of supply and demand shaping the stablecoin market, particularly with USDM, the first fiat-backed stablecoin on the Cardano blockchain. This exploration explains how USDM maintains stability by mirroring the supply and demand mechanics of traditional fiat currencies, ensuring its value remains pegged to the dollar. Learn about the role of arbitrage in correcting market imbalances and ensuring that USDM continues to provide a stable, reliable medium for digital transactions. Join us in understanding how these crucial economic principles underpin the functionality and reliability of stablecoins in the evolving financial landscape.