What Is Stablecoin? Why USDC and USDT Dominate DeFi

Stablecoins like USDT and USDC dominate DeFi because they maintain a 1:1 peg to the US dollar through reserves or algorithms. They provide liquidity, stability, and a bridge between fiat and crypto, powering most trading pairs and lending protocols. Understanding their collateralization and regulatory risks is essential for navigating decentralized finance safely.