# Problems We Solve

**Stablecoins** are a type of cryptocurrency designed to maintain a stable value relative to a specific asset or basket of assets, such as fiat currencies like the US dollar, commodities like gold, or other cryptocurrencies. They are widely used as a way for cryptocurrency holders to swap in and out of volatile tokens for a more stable token. Hence, stablecoins provide a bridge between the volatile world of cryptocurrencies and the stability of traditional assets, offering users a reliable medium of exchange, store of value, and unit of account within the digital economy.&#x20;

In this section, we will go through why stablecoins are important, how traditional stablecoins are not perfect, and what we will do differently.
