Crypto-Collateralised Stablecoin
German: Krypto-besicherter Stablecoin
A stablecoin minted against overcollateralised crypto positions and kept near its target by liquidation and arbitrage rather than by an issuer redemption promise.
Why people look this up
Risk readers wanting to know what happens to the peg when collateral falls fast and liquidations cannot clear.
Auf Deutsch
Krypto-besicherter Stablecoin — Ein Stablecoin, der gegen überbesicherte Kryptopositionen ausgegeben wird und seinen Zielwert durch Liquidationen und Arbitrage hält statt durch ein Rücktauschversprechen eines Emittenten.
Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.