> For the complete documentation index, see [llms.txt](https://docs.multibit.exchange/multibit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.multibit.exchange/multibit/multibit-ecosystem/ordinals-stablecoin.md).

# Ordinals Stablecoin

## **Collateralization Mechanism**

Ordinals Stablecoin is backed by a specific ratio of Ordinals ($ORDI) tokens held as collateral. These $ORDI tokens serve as a reserve to support the stability and value of the stablecoin. The collateralization mechanism ensures that the value of the stablecoin remains pegged to a 1:1 ratio to USDC

## **Key Features and Benefits:**

**Stability:** Ordinals Stablecoin aims to mitigate the price volatility associated with cryptocurrencies. This stability makes it a reliable medium of exchange, store of value, and unit of account within the Ordinals ecosystem.

**Value Preservation:** The collateralization mechanism helps maintain the stablecoin's value over time, providing users with a reliable asset that resists the price fluctuations common in the cryptocurrency market.

**Transparency:** The collateralization ratio and the total amount of $ORDI tokens held in reserve are typically made transparent and auditable on the blockchain. This transparency ensures trust and provides users with visibility into the stability of the stablecoin.

**Empowering the Ordinals Ecosystem:** By utilizing Ordinals ($ORDI) as collateral, the ordinals stablecoin enhances the overall utility and demand for the native token within the Ordinals ecosystem.