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Especially during turbulent times, stablecoins are becoming a very important part of the overall crypto asset ecosystem. While the prices of tokens on exchanges have a tendency to fluctuate wildly (and often in a highly correlated manner), stablecoins are designed to keep a steady store of value, allowing crypto traders and investors to mitigate risk and escape market volatility when a sudden drop hits the whole market or to lock-in gains as the bears eat everyone’s portfolio piece by piece. How do stablecoins manage to stay a calm island within the raging market seas? It’s not as complicated as you may think.