Stablecoin Backing

These terms explain how a stablecoin stays near its target value and how backing is checked.

How to recognize this theme

Terms around reserves, redemption, and peg maintenance.

In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.

Educational context

These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.

Reserve Ratio

Reserve ratio describes how much backing is held relative to the amount of a stablecoin in circulation.

Proof of Reserves

Proof of reserves is a report or process meant to show that an issuer or custodian holds the assets it claims to hold.

Redemption Window

A redemption window is the period when holders can exchange a token for the referenced asset or backing.

Peg Band

A peg band is the range around a target price where a stablecoin is still considered close to its peg.

Reserve

Reserves are assets held to support redemptions or maintain a stablecoin's target value.

Attestation

An attestation is a third-party report about assets backing an issuer or product at a point in time.

Redemption

Redemption is the process of exchanging a stablecoin or token for its underlying asset or cash value.

Depeg

A depeg happens when a stablecoin trades meaningfully away from its intended reference price.