Stablecoin Market Overview and Innovation Trend Analysis

The total market capitalization of stablecoins has exceeded $205 billion, and the market share of USDT continues to decline. This article will outline the characteristics of mainstream stablecoins and the innovative models of emerging stablecoins.

![\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

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: The issue of reserve transparency has been a major concern.

USDC (USD Coin)

• Issuer: Circle and Coinbase co-founded
• Launch date: 2018
• Compliance: Strictly adhere to U.S. regulatory requirements, high transparency of reserve assets.
• Value Anchor: Pegged to the US dollar at a 1:1 ratio, with reserves composed of cash and short-term government bonds.
• Market position: The second largest stablecoin, only behind USDT, highly favored by institutional users.

FDUSD (First Digital USD)

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

DAI

• Issuer: MakerDAO
• Launch date: 2017
• Value pegging: Maintained at a 1:1 ratio with the US dollar through smart contracts and collateral mechanisms.
• Operating Network: Ethereum and other EVM-compatible blockchains
• Features: The currently highest market cap algorithm stablecoin

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

New Stablecoin

The new type of stablecoin not only maintains price stability but also provides additional收益 for holders through innovative models.

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
• Mechanism: Users deposit assets to obtain LDT tokens, which can be freely traded.

3. Sky Dollar (USDS)

• Issuer: Sky (formerly MakerDAO)
• Features: Can be exchanged with DAI at a 1:1 ratio, allocated to USDS holders at a speed of 6 million SKY per year.

4. USDD

• Issuer: TRON Joint Reserve
• Features: Over-collateralized endorsement of various mainstream digital assets
• Transparency: The official website provides real-time staking rate inquiry.

5. BlackRock USD (BUIDL)

• Issuer: BlackRock
• Features: The first tokenized fund, investing in low-risk financial instruments
• Yield: about 4.5%, similar to the yield of US short-term government bonds during the same period.

6. Ondo US Dollar Yield (USDY)

• Issuer: Ondo Finance
• Operating mechanism: supported by short-term US Treasury bonds and bank demand deposits.
• Current yield: 4.65%
• Features: 40-day lock-up period, available only to non-US investors

7. USDX Money (USDX)

• Issuer: Stables Labs
• Mechanism: Generate profits through multi-coin arbitrage and perpetual contract hedging.
• Features: Similar to Ethena, but offers a wider range of coin options.

8. Frax (FRAX)

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

9. Resolv USD (USR)

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

10. M By M⁰ (M)

• Features: Decentralized stablecoin protocol that allows users to earn yield from collateral.
• Operating mechanism: off-chain collateral storage, on-chain asset value verification
• Sources of income: collateral yields, minting fees, penalties

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem (testing phase)
• Mechanism: Users deposit BTC to borrow the stablecoin $YU and can participate in DeFi protocols to earn returns.

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

Stablecoin Market Outlook

The stablecoin market is enormous and serves as the cornerstone of DeFi and the future PayFi. Stablecoins backed by fiat reserves like USDT/USDC will continue to dominate. New types of stablecoins are mainly divided into two categories:

1. Using traditional financial assets as reserves, the returns are relatively low.
2. Maintain stability through arbitrage, but there are issues of transparency and regulation.

The market value of stablecoins has the potential to further expand, as BUILD maps off-chain assets to on-chain, becoming reserves for other stablecoins. Investors can pay attention to emerging stablecoin protocols to seek airdrop and staking reward opportunities, but should be cautious with platform coins.

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

![\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

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

![\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

![\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

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

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