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So that's just 1 kind of stablecoin. The other is algorithmic - Terra was in that model. There are many excellent descriptions online, but essentially the backing entity buys and sells another coin (Luna in the case of Terra) whose value can fluctuate to maintain the price of their stablecoin. They are kinda genius in theory and so far rather messy in practice.

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No doubt, there are a lot of brilliant minds at work in this space and I hope it becomes more mainstream.

I'm still a bit of a skeptic though when it comes to anything other than Bitcoin and tend to believe that it's all just a liquidity game and if you can maintain the illusion of USD liquidity, you will keep the ball rolling and rake in a lot of money. Ultimately they do it so they can exchange their coin for USD, or maybe buy real estate, etc.

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