BRVX Glossary · Stablecoin · Updated September 25, 2026
A stablecoin is a crypto token designed to hold a steady value, usually one US dollar, by being backed by reserves such as cash and short-term bonds or by an on-chain mechanism. USDT and USDC are the largest; traders use them to hold value and settle trades without leaving crypto.
Types of stablecoins
- Fiat-backed: reserves of cash and treasuries held by an issuer (USDT, USDC).
- Crypto-backed: over-collateralised by other crypto locked in smart contracts.
- Algorithmic: supply adjusted by code with little or no reserve — the type most prone to losing its peg.
The peg is not a guarantee
A stablecoin can trade below one dollar when confidence in its reserves or redemption process drops. Holders carry issuer, custody and regulatory risk that a bank deposit does not.
On BRVX
Every BRVX perpetual is quoted in USDT. Margin can be posted in USDC, BTC, ETH, USDT, SOL or BNB; the two stablecoins among them do not move with crypto prices, while BTC, ETH, SOL or BNB used as margin can fall in value alongside a losing position.
Questions about Stablecoin
Is USDT the same as USDC?
No. Both target one dollar, but they have different issuers, reserves and reporting.
Can a stablecoin lose its peg?
Yes. Several have traded below $1 during stress; algorithmic designs have collapsed entirely.
Why do perpetuals settle in stablecoins?
So profit and loss are counted in a dollar-like unit rather than in a volatile coin.
Stablecoin: next steps on BRVX
Stablecoin on ETH/USDT: pick 5x to 100x, 50x by default, margin in 6 tokens. At 100x, a 1% move is 100% of margin.
Read next: Collateral, Margin trading and Perpetual futures.
Leverage works both ways: a small move against you can lose you the whole margin.
Open ETH/USDT in the app
Open appLeverage raises both gains and losses. Start with a size you are comfortable with. Not available to US persons.