Stablecoins
Stablecoins are a special type of cryptocurrency whose value is most often pegged to fiat currencies or other traditional real-world assets, such as the US dollar, euro, or gold. For example, if you have 1 USDT, it will always be worth 1 dollar. This provides a more stable exchange rate compared to other cryptocurrencies like Bitcoin or Ethereum.
There are two types of stablecoins:
Centralized — for example, USDT, which is issued on the TRON platform, and the company Tether is responsible for asset backing.
Decentralized — such as DAI, whose value and issuance are regulated not by a centralized organization but algorithmically through a CDP system managed by a decentralized community.
But there's a nuance. Stablecoins do not protect against inflation. For example, if the dollar loses purchasing power, your stablecoin also becomes cheaper.
Flatcoins
To solve this problem, flatcoins were invented, which can be called truly stable. They are suitable for long-term investment and savings storage. Their rate is tied to algorithmically calculated indices and other more stable indicators.
Flatcoin — a coin with a shield symbol. The shield protects from the word "Inflation"
For example, the value of the Dotflat flatcoin from the Cellframe Network ecosystem is tied to a basket of commodity goods. If today you can buy a certain amount of goods from this basket for 1 DFC, then in a year, despite inflation, the same basket will still cost 1 DFC.
A commodity basket consists of the most popular goods whose futures are traded on exchanges. Examples include: orange juice, oil, coffee, and gold.
The future belongs to flatcoins, which is why our ecosystem already has its own flatcoin Dotflat.
Join Cellframe Network and always stay one step ahead!
Glossary of Stablecoin and Flatcoin Terms
Stablecoin
A cryptocurrency whose value is pegged to traditional assets (fiat currencies, commodities) to maintain price stability. Provides predictable value but does not protect against inflation of the pegged asset.
Flatcoin
A cryptocurrency designed for true long-term stability, pegged to algorithmic indices or commodity baskets rather than fiat currencies. Maintains purchasing power over time, protecting against inflation.
Centralized Stablecoin
A stablecoin backed by a central entity (company) that holds reserves and guarantees redemption. Example: USDT (Tether), where the company maintains dollar reserves and manages issuance.
Decentralized Stablecoin
A stablecoin whose value is maintained algorithmically by smart contracts and community governance, without a central authority. Example: DAI, regulated through CDP mechanisms.
CDP (Collateralized Debt Position)
A smart contract system used in decentralized stablecoins where users lock collateral to generate stablecoins. The system automatically manages supply and value through algorithmic governance.
Inflation Protection
The ability of an asset to maintain its purchasing power over time despite currency devaluation. Flatcoins provide this; traditional stablecoins pegged to fiat do not.
Fiat Currency
Government-issued money (USD, EUR, etc.) that stablecoins typically peg to. Prone to inflation, which erodes purchasing power over time.
Pegged Value
A fixed exchange rate between a cryptocurrency and another asset. Stablecoins peg to fiat 1:1; flatcoins peg to commodity baskets or algorithmic indices.
Dotflat (DFC)
Cellframe's native flatcoin tied to a basket of commodity goods (orange juice, oil, coffee, gold). Provides inflation-resistant store of value — 1 DFC buys the same basket today and in a year.
Commodity Basket
A collection of physical goods whose futures are traded on exchanges. Dotflat's basket includes orange juice, oil, coffee, and gold — providing a diversified, inflation-resistant value anchor.
Utility Token
A token used to access services or functions within a blockchain ecosystem. In Cellframe, m-tokens are utility tokens for paying for services like KEL VPN.
Purchase Power
The actual amount of goods and services that a currency can buy. Flatcoins are designed to preserve this over time, unlike inflation-prone stablecoins.
FAQ: Stablecoins and Flatcoins
What are stablecoins and how do they maintain their peg?
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging to external assets (usually fiat like USD). Centralized stablecoins like USDT maintain reserves and guarantee redemption. Decentralized stablecoins like DAI use algorithmic mechanisms and collateral (CDP) to regulate supply and price automatically.
What are the two main types of stablecoins and how do they differ?
Centralized stablecoins (e.g., USDT) are issued by companies that hold asset reserves and manage backing. Decentralized stablecoins (e.g., DAI) operate via smart contracts and community governance, with value regulated algorithmically without a central authority.
What's the main problem with stablecoins that flatcoins solve?
Stablecoins don't protect against inflation. If the dollar loses 10% purchasing power, your USDT loses 10% value. Flatcoins solve this by pegging to commodity baskets or algorithmic indices that track real-world purchasing power, preserving value over time.
What is a flatcoin and how does it differ from a stablecoin?
A flatcoin is an inflation-resistant cryptocurrency that maintains purchasing power rather than a fiat peg. While stablecoins aim for price stability in fiat terms, flatcoins ensure your token buys the same amount of goods in 1 year as today. Dotflat (DFC) is a prime example.
How does Dotflat (DFC) work and what backs its value?
Dotflat is tied to a basket of commodities (orange juice, oil, coffee, gold) whose futures trade on exchanges. If 1 DFC buys X amount of this basket today, it will buy the same basket in a year, regardless of dollar inflation. This provides true long-term stability.
What is the commodity basket for Dotflat and why these specific goods?
The basket includes orange juice, oil, coffee, and gold — highly liquid commodities with active futures markets. This diversified selection represents essential economic goods, making the basket a reliable, measurable indicator of real purchasing power across different sectors.
Why are flatcoins considered the future of cryptocurrency?
Flatcoins address crypto's volatility problem while also solving fiat's inflation problem. They combine crypto's decentralization with gold-like inflation resistance, making them ideal for long-term savings, store of value, and protection against currency debasement — critical functions in uncertain economic times.
Can I use Dotflat in the Cellframe ecosystem?
Yes! Dotflat (DFC) is integrated into Cellframe Network. You can trade it on Cellframe DEX, store it in Cellframe Wallet, stake it, and use it for payments within the ecosystem. It benefits from Cellframe's post-quantum security and two-level sharding infrastructure.
How does Cellframe implement both stablecoins and flatcoins?
Cellframe's native CELL coin serves as the ecosystem's base currency. Parachains can issue their own stablecoins or utility tokens. The ecosystem's flatcoin Dotflat (DFC) provides inflation-resistant value storage, while m-tokens serve as utility tokens for services like KEL VPN.
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