Re: Are stablecoins based on trust?

Quote from: NabonitaS on Today at 01:52:58 PM

Here is an article on Tether that mentions the trust factor: https://nowpayments.io/blog/tether-review-what-type-of-tether-to-accept-payments-in-and-why

It says there among other things, "Tether, like any other stablecoin, hopes to keep its value steady and consistent, which has a lot to do with ‘trust.’"

It also says:

1- "Stablecoins are cryptocurrencies that are designed to be non-volatile and have a stable price at any given moment".
My question: What make it stable and being "non-volatile'? Our trust that 1 tether = $1 and for that reason our desire to buy and sell only in that value?

2- "In a nutshell, stablecoins operate under a fixed exchange rate system."
My question: What system is that? How it works? What ensure users will buy and sell for the price of the pegged asset? Because we (users) want to, based on the assumption (trust) that 1 tether = $1?

Let suppose there no sell order of tether in a given time and some user want to buy some tether for whatever reason. In that case, a owner of tether could place the only sell order existent of tether for (let suppose) $1,50 and maybe someone could accept to buy because he/she really want conver their fiat into crypto "stablecoin"?

Is there some "design" or "fixed exchange rate SYSTEM" of the crypto to prevent this kind of thing and insure it will be traded for the pegged price of the asset?

I'm really confuse here... The idea behind stablecoin are great! But realize the mechanism behind it is trust is really annoying.