How do stablecoins play a key role in on-chain finance? From the perspective of traditional finance, this question is increasingly being recognized by industry experts.

In the Web3 ecosystem, stablecoins have become an indispensable infrastructure. They connect the fiat world with the crypto asset world and are the primary settlement tool for on-chain financial transactions. When traditional finance practitioners enter the Web3 space, they often encounter a core question: how to understand and utilize stablecoins to achieve efficient on-chain financial operations?

This involves not only technical understanding but also a deep grasp of financial logic. Stablecoins have a wide range of application scenarios in DeFi—from lending protocols to DEX trading, from liquidity mining to cross-chain interactions, stablecoins serve as a medium of value and a hedge against risks.

For traditional financial institutions and professional investors looking to deploy in Web3, mastering the practical on-chain applications of stablecoins is a key to opening the door to the crypto ecosystem. Understanding the underlying mechanisms, risk management approaches, and market prospects behind them is essential to making more rational decisions in this emerging field.