Reserve Asset
A reserve asset is an asset held to support a stablecoin's ability to meet stated redemption or stability objectives.
Category
Stablecoin Mechanics
Stablecoin designs use reserves, redemption processes, collateral, and transparency practices to support their stated value objective.
How to recognize this theme
Terms that explain how a stablecoin aims to maintain a reference value.
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.
Redemption
Redemption is the process of exchanging a token for an underlying asset or its stated reference value under the issuer's rules.
Overcollateralization
Overcollateralization means pledged collateral is worth more than the associated debt or issued asset, creating a buffer against value changes.
Attestation
An attestation is a report in which an independent party states whether specified information, such as reserve balances, met stated criteria at a point in time.
Mint
To mint a stablecoin is to create new tokens when backing or collateral is added.
Redeem
To redeem a stablecoin is to return tokens and receive the underlying value back.
Reserves
Reserves are the assets held to support a stablecoin's liabilities.
Peg
A peg is the target value a stablecoin aims to track.
Reserve Ratio
The reserve ratio compares backing assets with the amount of stablecoin supply they support.
Attestation
An attestation is a statement or report that verifies reserves or other claims.
Redemption Right
A redemption right is the ability to swap tokens back for the underlying asset or value.
Peg Band
A peg band is the range around a target price in which a stablecoin is considered near parity.
Reserve Ratio
The reserve ratio is the share of reserve assets held against outstanding stablecoin supply.
Redemption Queue
A redemption queue is the waiting line for users who request conversion back to the reference asset.
Peg Band
A peg band is the price range a stablecoin is expected to stay near.
Attestation Report
An attestation report is a third-party statement that describes reserves or controls at a point in time.
Reserve
A reserve is the backing held against issued tokens or liabilities.
Mint
Minting issues new tokens according to the protocol's rules.
Redeem
Redeeming returns a token for the underlying asset or claim value.
Depeg
A depeg happens when a stablecoin or similar asset moves away from its reference value.
USDC
USDC is a dollar-denominated stablecoin issued by Circle.
Tether
Tether is the issuer of USDT, one of the largest dollar-linked stablecoins.
Peg
A peg is the target value a stablecoin or currency arrangement tries to maintain.
Reserve
Reserves are assets held to back redemptions or support a stablecoin's value.