pstable

pstable is a branding used in the cryptocurrency and decentralized finance space to refer to stablecoins or stability-focused protocols that aim to maintain a relatively constant value, typically pegged to a fiat currency such as the US dollar. Because there is no single universally recognized project named pstable, the exact design and governance can vary between implementations that use the name or branding.

Design approaches for pstable-type systems generally fall into two broad categories: reserve-backed and algorithmic. Reserve-backed pstable tokens hold collateral in reserve assets, such as fiat deposits or crypto assets, and allow users to mint new stablecoins by locking collateral, with redemption for collateral as a means of maintaining the peg. The stability of such systems relies on the adequacy and management of reserves, as well as transparency and auditing. Algorithmic pstable variants, in contrast, seek to stabilize price through supply adjustments without large reserve backing. They use rules that increase or decrease supply or alter collateral parameters in response to market conditions, sometimes complemented by incentive mechanisms; these systems can be more sensitive to volatility and liquidity conditions.

Governance in pstable projects typically involves token holders voting on parameters, collateral choices, risk controls, and upgrade proposals. Use cases span DeFi activities such as lending, liquidity provision, payments, and on-chain settlements. Risks include peg stability under stress, liquidity risk, regulatory developments, and smart contract or custodian vulnerabilities.