| Stablecoins have value outside of just trading pairs on exchanges. The main value I find in them is that they allow you to reason about fiat(or really any other currency) on chain in a far simpler manner. For example, suppose there's a smart contract based lending marketplace on the network. In most cases, real world users(lendees) will want said loan to be in the context of their local currency. As a lender you will want to provide said loan but you only have non-local currency assets. Stablecoins allow you to represent the value of said loan on the network in a way that smart contracts can easily understand. Additionally, the lending marketplace could automatically handle the conversion between whatever X asset the lender has and the fiat stablecoin the lendee wants and vice-versa. The main value add outside of convenience is that the current value of the loan is the same in the context of the local currency both at the day of signing and on the repayment date. Without working in the local currency, people could find themselves with a 50% more or less valuable loan the day after they sign it or the day before they repay it given current market volatility. Stablecoins and wrapped currencies bypass that issue. This basic concept applies to any service marketplace where one side wants to use one currency and the other wants to use another. For fiat the solution is called a stablecoin but for incompatible cryptocurrencies the solution is called a "wrapped" currency. Like others have mentioned there are regulatory advantages however they also greatly simplify a lot of things on the network for both sides of a transaction in various service marketplaces. |