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How stable are the top stablecoins? A quantitative analysis

Which stablecoin performs the best?

Metric 1: Deviation from $1.00 peg

Deviation = Max(High Price — $1.00, $1.00 — Low Price)

Metric 2: Downside deviation from $1.00 peg

Downside deviation = If Low Price < $1.00, Low Price — $1.00

Metric 3: Volatility of daily price changes

σ( Δp1…. Δp60) x √365

Metric 4: Market correlation in a downturn

And the winner is…

Qualitative factors

Conclusion

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Wes Levitt

Wes Levitt

197 Followers

Head of Strategy @ Theta Labs. Writing about finance, crypto, and anything else market-based. wes_levitt@berkeley.edu