Overview of the Stablecoin Market and Analysis of Emerging Types

Traditional Stablecoins

USDT (Tether)

• Issuer: Tether
• Launch date: 2014
• Value anchoring: 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: Transparency issues of reserve fund audits

USDC (USD Coin)

• Issuer: Co-founded by Circle and Coinbase, regulated by a central consortium.
• Release Date: 2018
• Features: Strong compliance, high transparency of reserve assets
• Value pegging: 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

FDUSD (First Digital USD)

• Issuer: First Digital Labs
• Launch time: 2023
• Pegging mechanism: 100% US dollars or equivalent cash equivalents as reserves
• Blockchain support: Compatible with Ethereum and Binance Smart Chain

DAI

• Issuer: MakerDAO
• Launch date: 2017
• Features: Decentralized, over-collateralized stablecoin
• Value pegging: Pegged to the US dollar at a 1:1 ratio through smart contracts and collateral mechanisms.
• Operating network: Ethereum and other EVM-compatible blockchains

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diversification of stablecoins in one article

New Stablecoin

The new type of stablecoin not only maintains price stability but also provides additional returns for holders through innovative models. Key features include:

1. Provide returns by investing in low-risk assets, staking native tokens, or structured financial strategies.
2. Use government bonds and other assets 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
• Operating mechanism: Maintaining a 1:1 peg with the US dollar through Delta neutral strategy
• Sources of income: staking rewards, funding rates, and basis income
• Current yield: approximately 8.64%

![\Wangou Original] The total market value of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, a comprehensive understanding of diversified stablecoins

2. USD0

• Issuer: Usual Protocol
• Features: stablecoin issued with RWA assets as reserves at a 1:1 ratio
• Mechanism: Users deposit assets to obtain LDT representing the initial value of the deposit.

3. Sky Dollar (USDS)

• Issuer: MakerDAO (renamed to Sky)
• Features: Can be exchanged 1:1 with DAI, SKY governance tokens are distributed annually to USDS holders.

4. USDD

• Issuer: TRON Joint Reserve
• Features: Over-collateralized endorsement of multiple mainstream digital assets
• Circulating chains: TRON, Ethereum, BNB Chain and 11 other public chains

5. BlackRock USD (BUIDL)

• Issuer: BlackRock
• Launch date: March 2024
• Features: Tokenized funds, investing in cash, US Treasury bonds, and repurchase agreements.
• Yield: Daily accrued earnings, distributed monthly, current yield rate is approximately 4.5%

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diversification of stablecoins in one article

6. Ondo US Dollar Yield (USDY)

• Issuer: Ondo Finance
• Mechanism: Supported by short-term U.S. Treasury bonds and bank demand deposits.
• Sources of income: returns from underlying assets and compound interest returns
• Current yield: 4.65%

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversification of stablecoins in one article

7. USDX Money (USDX)

• Issuer: Stables Labs
• Mechanism: Generate income through Delta-neutral investment portfolio strategy.
• Features: Offers a wide range of coin options, potential for higher returns and risks.

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diversity of stablecoins in one article

8. Frax (FRAX)

• Issuer: Frax Finance
• Mechanism: Combination of partial collateral and algorithmic mechanisms
• Sources of income: interest income, liquidity mining, governance token FXS
• Current yield: approximately 10%

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diverse stablecoins in one article

9. Resolv USD (USR)

• Mechanism: Use ETH and derivatives as collateral to protect assets through hedging operations.
• Source of income: ETH staking income and hedge operation difference

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, and understand the diversity of stablecoins in one article

10. M By M⁰ (M)

• Features: Decentralized stablecoin protocol
• Mechanism: Minting M tokens through approved collateral.
• Sources of income: collateral earnings, minting fees, and penalties

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversified stablecoins in one article

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem
• Mechanism: Users deposit BTC or UTXO assets to borrow stablecoin $YU
• Source of income: Additional earnings through DeFi protocols

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diversity of stablecoins in one article

Stablecoin Market Summary

• The market size is enormous, and it is the cornerstone of DeFi and future PayFi.
• Stablecoins such as USDT/USDC still dominate the market with fiat currency reserves.
• New stablecoins are divided into two categories:

1. Use traditional financial assets as reserves, with stable but low returns.
2. Maintain stability through arbitrage, there are transparency and regulatory issues.

• The market value of stablecoins may continue to expand, but potential risks should be heeded.
• Investors can pay attention to emerging stablecoin protocols to strive for airdrop and staking rewards, but should be cautious with platform coins.

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversification of stablecoins in one article