The correct answer is C.

Stablecoins aim to maintain a stable value relative to a specified asset or pool of assets. Stablecoins have become a fundamental part of the crypto ecosystem, mainly because they offer a solution to the high volatility and low liquidity issues inherent in many cryptocurrencies. They are typically pegged to a numeraire, most often the US dollar, but can also be tied to other currencies or assets like gold or even other crypto assets. This pegging mechanism allows stablecoins to serve as a medium of exchange within the crypto universe, providing a level of price stability that is not present in unbacked cryptocurrencies. This stability is crucial in facilitating transactions within the ecosystem, particularly in decentralized finance (DeFi) applications, where they play a key role. There are two main types of stablecoins: asset-backed and algorithmic. Asset-backed stablecoins are managed by a centralized intermediary and are...