The stablecoin market size has surpassed $205 billion, with USDT's share continuing to decline, analysis of the development trend of diversified stablecoins

Traditional Stablecoins

USDT (Tether)

Issuer: Tether Launch time: 2014 Value peg: pegged to the US dollar at a 1:1 ratio, backed by reserve assets. Market Position: One of the earliest, largest in trading volume, and most liquid stablecoins in the world. Controversy: The transparency of reserves has always been a focus.

USDC (USD Coin)

Issuer: Founded by Circle and Coinbase, regulated by the Centre Consortium. Launch time: 2018 Features: Strong compliance, high transparency of reserve assets, monthly audits are conducted. Value pegged: Pegged to the US dollar at a 1:1 ratio, with reserves consisting of cash and short-term government bonds. Market Position: The second largest stablecoin after USDT, favored by institutional users.

FDUSD (First Digital USD)

Issuer: First Digital Labs Launch time: 2023 Anchoring mechanism: 100% USD or equivalent cash equivalents as reserves Supported networks: Ethereum and Binance Smart Chain

DAI

Issuer: MakerDAO Launch date: 2017 Features: decentralized, over-collateralized stablecoin Value pegging: Tied to the US dollar at a 1:1 ratio through smart contracts and collateral mechanisms. Operating Networks: Ethereum and other EVM-compatible chains

New Stablecoin

The new stablecoin not only maintains price stability but also provides additional investment returns. Main features:

1. Provide returns through low-risk asset investment, token staking, or structured financial strategies.
2. Use assets such as government bonds as collateral to maintain price stability and high liquidity.
3. Combine on-chain assets with off-chain funds, bonds, etc.

1. USDe

Developer: Ethena Labs Operational mechanism: Maintains a 1:1 peg to the USD through a Delta neutral strategy. Sources of income: staking rewards, funding rates, and basis income Current yield: approximately 8.64%

2. USD0

Issuer: Usual Protocol Features: Issued 1:1 with RWA assets as reserves. Mechanism: Users deposit assets to obtain LDT synthetic assets, representing the initial value of the deposit.

3. Sky Dollar (USDS)

Issuer: Sky ( original MakerDAO ) Features: DAI can be exchanged 1:1 for USDS, and MKR can be exchanged for SKY governance tokens. Annual allocation: 600 million SKY allocated to USDS holders

4. USDD

Issuer: TRON Joint Reserve Features: Over-collateralized endorsement of various mainstream digital assets Circulation network: TRON, Ethereum, BNB Chain and 11 other public chains

5. BlackRock USD (BUIDL)

Issuer: BlackRock Launch date: March 2024 Features: Combining the stability of traditional finance with the efficiency of blockchain technology. Investment targets: cash, US Treasury bonds, and repurchase agreements Current yield: approximately 4.5%

6. Ondo US Dollar Yield (USDY)

Issuer: Ondo Finance Features: Income-generating USD token, backed by short-term U.S. Treasury bonds and bank demand deposits. Source of income: interest income from underlying assets, compound returns Current annualized yield: 4.65%

7. USDX Money (USDX)

Issuer: Stables Labs Features: Generate income through Delta neutral investment portfolio strategy. Advantages: Offers a wider selection of coins, potential for higher returns.

8. Frax (FRAX)

Issuer: Frax Finance Mechanism: Combination of partial collateral and algorithmic mechanism Sources of income: interest income, liquidity mining, governance token FXS Current annualized return rate: about 10%

9. Resolv USD (USR)

Features: Using ETH and derivatives as collateral, protecting assets through hedging operations. Source of income: ETH staking rewards, hedge operation price difference

10. M By M⁰ (M)

Features: A decentralized stablecoin protocol that allows permitted participants to mint M tokens. Sources of income: collateral earnings, minting fees, penalties

11. yala

Features: Stablecoin protocol based on the Bitcoin ecosystem. Mechanism: Users deposit BTC to borrow stablecoin $YU and participate in DeFi products to earn profits.

Stablecoin Market Outlook

• The market size is huge, serving as the cornerstone of DeFi and future PayFi.
• Stablecoins like USDT/USDC will continue to dominate the market.
• New types of stablecoins are divided into two categories: traditional financial asset reserves and arbitrage maintenance balance.
• The market capitalization of stablecoins has the potential to expand further.
• Investors should pay attention to emerging stablecoin protocols, seize airdrop and staking reward opportunities, and approach platform coins with caution.