# Why are there different stablecoins?

When you visit our V1 dApp, you might need more clarity regarding the variety of stablecoins available. Each stablecoin is backed by different types of collateral, each with unique risk profiles. Here's a breakdown of their key differences:

Each of these stablecoins is designed to serve different use cases and risk appetites. For more details, explore our [Token Breakdown](/fx-docs/more/token-breakdown.md).


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