Tokens & Stablecoins
Fungible tokens, standards, and coins that hold their value.
You’ll cover
Lesson map
Tokens are contracts
Most tokens aren't separate blockchains - they're smart contracts that keep a ledger of who owns how much. On Ethereum, fungible tokens follow the ERC-20 standard, so any wallet or app knows how to read balances and transfers.
Standardization is why a brand-new token works instantly in existing wallets and exchanges.
Stablecoins
A stablecoin is a token engineered to stay near a fixed value - usually one US dollar. Some are backed by real dollars held in reserve; others use crypto collateral or algorithms to hold the peg.
They let people move dollar-like value on-chain and are the settlement layer for much of DeFi. But 'stable' depends entirely on the backing being real and sufficient - pegs have broken before.
Remember
Not all stablecoins are equal. Always check what backs the peg and who can freeze or redeem it.
Concept map · schematic
What a swap actually consumes
Available depth along the execution route—not headline TVL—determines price impact.
- 01
Trade size
How much the user wants to exchange
- 02
Available depth
Executable liquidity at successive prices or bins
- 03
Execution
Output depends on fees, depth and route
Important: Pool TVL alone cannot determine slippage; request a fresh executable quote.
Self-check
Check your understanding
Choose an answer for each question, then check the results and explanations.
Primary references
Documentation and standards
References added
Official technical references for further verification. A source link is not a guarantee that every earlier editorial sentence has been reverified; provider specifications may also change over time.
The curriculum predates this reference index. These sources are offered to check technical details; no original publication date has been inferred.
- ERC-20 token and allowance specificationEthereum Improvement ProposalsRead source ↗
- Uniswap v3 swap mechanicsUniswapRead source ↗
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