Put simply, fiat is currency that has been issued or declared as legal tender by a government. As you can’t spend paper money on the blockchain, stablecoins have been created as their digital equivalent.
Stablecoins are issued and backed (pegged) against US dollars at an equivalent rate of 1:1, with real dollars or dollar equivalent liquid assets held by custodians to the same value. Unlike Bitcoin, which is volatile, stablecoins trade in tandem with real dollars and issuers allow them to be changed back to paper at a rate of 1:1.
If you don’t own stablecoins or any other digital assets, you can purchase some directly on the platform using your credit card or bank account.
Yield App does not certify nor underwrite the asset backing of stable coins or the accuracy of audits by stablecoin issuers and their advisors, users are recommended to undertake their own research.