# Stablecoin

## Definition

A stablecoin is a crypto token designed to track a relatively stable reference value such as a fiat currency.

## What it means in practice

Stablecoins can use reserves, collateral or algorithmic mechanisms and can exist as different contracts across networks.

## How this concept appears in Terenval Wallet

When a supported stablecoin appears in an EVM wallet context, Terenval users still need to verify the network and contract rather than only the symbol.

**Important:** A stable price target does not make a stablecoin risk-free or guarantee redemption.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [Token](https://wallet.terenval.com/glossary/token/)
- [ERC-20](https://wallet.terenval.com/glossary/erc-20/)
- [Contract address](https://wallet.terenval.com/glossary/contract-address/)
- [Native token](https://wallet.terenval.com/glossary/native-token/)
- [Multi-chain wallet](https://wallet.terenval.com/glossary/multi-chain-wallet/)

## Related Terenval Answers

- [Ethereum Layer 2 Networks and Gas Fees](https://wallet.terenval.com/answers/ethereum-layer-2-networks-and-gas-fees/)
- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)

## Sources

- https://ethereum.org/en/developers/docs/
- https://eips.ethereum.org/
- https://wallet.terenval.com/info/supported-networks/

Official page: https://wallet.terenval.com/glossary/stablecoin/