Use Cases of Stable Tokens

---

How It Works:

• Traditional international payments often come with high fees, long wait times, and reliance on intermediaries.
• Stable tokens enable near-instantaneous, low-cost transactions across borders, without the need for traditional banks or payment systems.

Examples:

• USDC and USDT are frequently used by businesses and individuals to transfer money internationally, enabling users to bypass expensive remittance services.
• WYST is another option emerging from the public sector, providing a state-backed stablecoin for secure and efficient cross-border payments.

Benefits:
✅ Low transaction fees – Much cheaper than traditional wire transfers.
✅ Speed – Payments that usually take days can be completed in minutes.
✅ Accessibility – Easier access to global financial systems, particularly for underbanked populations.

How It Works:

• Stable tokens are heavily used in DeFi applications, which rely on smart contracts to provide financial services without intermediaries.
• They serve as collateral for loans, as assets for yield farming, and as the base currency for decentralized exchanges (DEXs).

Examples:

• DAI (a crypto-collateralized stablecoin) is commonly used in DeFi lending platforms like MakerDAO and Compound.
• WYST, as a fiat-backed token, is also expected to play a role in DeFi as it facilitates a stable, transparent, and regulated alternative for users.

Benefits:
✅ Lending and borrowing – Allows users to lock in stable value for loans.
✅ Yield farming and staking – Can earn interest by using stable tokens as liquidity.
✅ Decentralization – Ensures that financial services are not reliant on centralized institutions.

How It Works:

• Stable tokens enable businesses to accept payments in a digital asset that avoids the price volatility of regular cryptocurrencies.
• Businesses can easily convert stable tokens to fiat or use them to pay for goods and services in the digital economy.

Examples:

• Merchants can accept USDT, USDC, or BUSD as payment for goods and services through payment processors like BitPay or Coinbase Commerce.
• WYST, once fully launched, can be used for purchases across a wide range of platforms, offering more security and stability for merchants.

Benefits:

✅ Fast transactions – Payments are processed quickly, allowing businesses to operate more efficiently.
✅ Global reach – Stable tokens allow businesses to engage with customers across borders.
✅ Lower fees – Transaction costs are significantly lower compared to traditional payment systems.

How It Works:

• Stable tokens can be used as a safe place to store value in the digital world, offering returns in decentralized finance protocols or traditional savings accounts.
• Investors seeking to avoid the volatility of crypto assets can hold stable tokens as a hedge against price fluctuations.

Examples:

• USDC is commonly used by investors who wish to maintain exposure to the dollar while gaining interest through DeFi platforms or traditional crypto savings accounts.
• WYST could also become an attractive option for those looking to park funds in a regulated, stable digital asset that offers transparency and government-backed security.

Benefits:

✅ Stable store of value – Avoids the price fluctuations that typically come with traditional cryptocurrencies.
✅ Interest-bearing – Many DeFi protocols and savings accounts offer yield on stable token holdings.
✅ Security – With government-backed options like WYST, users can feel more confident about the asset's reliability.

How It Works:

• Stable tokens act as a safeguard against inflation, particularly in countries with volatile local currencies.
• By holding stable tokens pegged to the U.S. dollar or gold, individuals and businesses can protect their assets from depreciation.

Examples:

• In countries experiencing hyperinflation, stable tokens like USDC or PAXG are increasingly being used as a safe haven for digital wealth preservation.
• WYST, once launched, can provide an option for U.S. residents to keep their funds in a stable, government-backed digital asset.

Benefits:

✅ Protection against currency depreciation – Safeguards value in countries with volatile currencies.
✅ Easy access to global assets – Provides a way for users to hold assets in a stable, internationally recognized currency (like the USD).
✅ Government-backed security – WYST offers a regulated and transparent option for hedging against inflation.

How It Works:

• Stable tokens are widely used in smart contracts to automate various financial transactions, including loan agreements, insurance payouts, and subscription payments.
• Smart contracts allow parties to execute agreements without needing an intermediary, with payments often made in stable tokens to ensure predictable outcomes.

Examples:

• USDT and USDC are used in smart contracts on blockchains like Ethereum and Binance Smart Chain (BSC) for automating various transactions in DeFi applications.
• WYST could play an integral role in government contracts or other regulated environments that require stable and secure payment solutions.

Benefits:

✅ Automation – Transactions are executed automatically based on predefined conditions.
✅ Reliability – Payments are made in a stable digital asset, reducing the risk of price swings.
✅ Programmable security – Smart contracts ensure transparent and efficient execution.

Stable tokens are transforming a wide range of industries, from finance to e-commerce and international remittances. With their versatility and potential to improve financial systems globally, the applications for stable tokens continue to grow.

Up next, explore the benefits and risks of using stable tokens and understand how these innovations may shape the future of finance.

👉 Continue to 4. Benefits and Risks of Stable Tokens

📌 1. Introduction to Stable Tokens – Learn what stable tokens are, how they work, and why they matter in the digital finance world.

📌 2. Types of Stable Tokens – Explore different categories and how they function.
📌 3. Use Cases of Stable Tokens – Learn how they are used in payments, trading, DeFi, and more.
📌 4. Stable Tokens Benefits and Risks – Understand the advantages and potential challenges.
📌 5. Stable Tokens Regulatory Landscape – Discover how governments and financial institutions are responding.
📌 6. Future of Stable Tokens – What’s next for Stable Tokens and digital finance?

Disclaimer