Apr 7, 2022
Stablecoin Primer Section 4— Stablecoin shallow dives
With so many stablecoins out there, which one works the best?
This article is part of the Stablecoin Primer series. If you are interested in reading the other articles, check out this post.
If you have come this far, you probably do not need this reminder but the same mental models mentioned in Section 3 applies here as well. If you haven’t done so, I invite you to read the Two mental models part in Section 3. If you have already read Section 3, just a TLDR reminder that:
“As simple as the concept of a stablecoin may sound, the protocols and mechanisms behind these stablecoins can be quite intricate.”
Hopefully, the two mental models from Section 3 reduce some complexity by aligning what to expect from the meat of this section where we analyze stablecoin projects one by one.
The format for each stablecoin project is as follows. First, I provide a brief intro of the protocol and follow that with the tokens that are critical to the protocol. Then, I analyze the details of the protocols using the design principles from Section 3, and end the analysis by presenting some key metrics as well as some specific use cases for each stablecoin. I call this format “Shallow-dive” — the information you will find is more detailed than what you would find on the surface (e.g., via Bloomberg.) But since this is a Primer, we are only diving to the shallow depths of each stablecoin so will not need a too much of a diving experience (also it’s not like there aren’t enough deep-dives out there already.) Let’s go!
Fiat-backed stablecoins:
- USDT by Tether (article link)
- USDC by Circle and Coinbase (coming soon)
Crypto-backed stablecoins:
- DAI by Maker (article link)
- OUSD by Origin Dollar (coming soon)
Algorithmic stablecoins:
- UST by Terra (article link)
- FRAX by Frax Finance (coming soon)
- FEI by Fei Protocol (coming soon)
- UXD by UXD Protocol (coming soon)
STABLECOIN PRIMER article series
Stablecoin Primer — Intro: Rower and slow cooker
Stablecoin Primer — Section 1: Path to stablecoins
Stablecoin Primer — Section 2: Stablecoin landscape
Stablecoin Primer — Section 3: Stablecoin types
Stablecoin Primer — Section 4: Stablecoin projects (you are here)
Stablecoin Primer — Section 5: Stablecoins’ future
Stablecoin Primer — Bonus section: Anything missed
Enjoy! Happy to chat further via comments, Twitter, or Linkedin
Special thanks to NEAR Team Grants for making this research possible.
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