The market capitalization of stablecoins surpasses 205 billion USD, while the share of USDT continues to decline.

The stablecoin market is undergoing significant changes, with a total market capitalization exceeding 205 billion USD, but the market share of USDT continues to decline. This article will provide a comprehensive analysis of the current development status of mainstream stablecoins.

Traditional stablecoin

USDT (Tether)

• Issuer: Tether Company
• Release Date: 2014
• Value pegging: 1:1 linked to USD, backed by reserve assets
• Market Position: One of the earliest and largest trading stablecoins in the world
• Controversy: The issue of reserve audit transparency has sparked discussions

USDC (USD Coin)

• Issuer: Founded by Circle and Coinbase
• Launch date: 2018
• Features: Strong compliance, high transparency of reserve assets
• Market Position: The second largest stablecoin after USDT

FDUSD (First Digital USD)

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

DAI

• Issuer: MakerDAO
• Launch time: 2017
• Features: decentralized, over-collateralized stablecoin
• Operating Network: Ethereum and other EVM-compatible blockchains

New Stablecoin

The new stablecoin not only maintains price stability but also provides additional investment returns for holders. Key features include:

1. Provide returns through low-risk asset investments, staking, 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: Maintains a 1:1 peg with the US dollar 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
• Operating 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 with DAI at a 1:1 ratio, SKY tokens are distributed annually 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 other 11 public chains

5. BlackRock USD (BUIDL)

• Issuer: BlackRock
• Launch date: March 2024
• Operating mechanism: Issuing tokenized shares through Ethereum to invest in low-risk financial instruments
• Source of income: underlying asset yield, currently about 4.5%

6. Ondo US Dollar Yield (USDY)

• Issuer: Ondo Finance
• Operating mechanism: supported by short-term US Treasury bonds and bank demand deposits
• Sources of income: underlying asset returns and compound returns
• Current yield: 4.65%

7. USDX Money (USDX)

• Issuer: Stables Labs
• Operating mechanism: generating income through Delta neutral investment portfolio strategy
• Features: Provides multi-coin arbitrage and perpetual contract hedging mechanism

8. Frax (FRAX)

• Issuer: Frax Finance
• Operating mechanism: a combination of partial collateral and algorithmic mechanism
• Sources of income: interest income, liquidity mining, governance token FXS
• Current yield: approximately 10%

9. Resolv USD (USR)

• Operating mechanism: Using ETH and derivatives as collateral, protecting assets through hedging operations.
• Source of income: ETH staking rewards and arbitrage operation differences

10. M By M⁰ (M)

• Issuer: M⁰ Protocol
• Operating mechanism: Minting M tokens through approved collateral.
• Sources of income: collateral earnings, minting fees, penalties

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem
• Operating mechanism: Users deposit BTC to borrow stablecoin $YU
• Source of income: Earn additional income through DeFi protocols

Stablecoin Market Outlook

The stablecoin market is vast and serves as the cornerstone of DeFi and future payment finance. In the short term, stablecoins backed by fiat reserves such as USDT/USDC will continue to dominate. The development of new stablecoins depends on the recognition of exchanges and DeFi protocols. Investors can pay attention to emerging stablecoin protocols to seize airdrop and staking reward opportunities, but they should approach the risks of platform coins with caution.