Sunday, December 3, 2023

DeFi protocols launch stablecoins to lure new users and liquidity, but does it work?


Stablecoin tasks have been thrust into the limelight over the previous month as the recognition of algorithmic stablecoins and the collapse of the Terra challenge put a highlight on the vital position dollar-pegged belongings play within the crypto market.

In response to the void left by UST, a number of protocols have launched new stablecoin tasks in an effort to entice new users and seize liquidity. Usually talking, the DeFi sector is filled with gimmicks which are designed to entice person participation and it’s potential that the latest stablecoin launch packages are merely the subsequent trending tactic getting used to enhance TVL on DeFi platforms.

Let’s check out a number of the latest stablecoins to hit the market and what affect they could or will not be having inside DeFi.


One of many greatest stablecoin tasks to launch lately is USDD, a decentralized algorithmic stablecoin on the Tron (TRX) blockchain. Since launching on Could 5, USDD has skilled speedy progress by way of its circulating provide, which at present sits close to 601.86 million and its integration throughout the Tron ecosystem is comparatively widespread.

USDD market cap progress. Supply: CoinGecko

USDD can be accessible on the Ethereum (ETH) community and the BNB Good Chain (BSC), which has helped to enhance the tokens distribution together with offering further yield alternatives.

There are a number of liquidity supplier swimming pools accessible to USDD holders that supply 20% APY or extra throughout varied protocols, together with JustLend, SunSwap, Ellipsis and Curve. Within the time since USDD launched, the worth of TRX has elevated 17% from $0.07 to its present worth of $0.0818 after briefly hitting a excessive of $0.092 on Could 31.


Fantom lately launched fUSD, its first native stablecoin, which is an over-collateralized and will be minted utilizing Fantom (FTM), USD Coin (USDC), Dai (DAI), SpiritSwap (SPIRIT) and wrapped Tether (fUSDT) as collateral.

In an effort to entice extra liquidity, the Fantom Basis set the fUSD staking reward at 11.3% and created a fUSD to USDC swap interface that enables users to buy fUSD and repay their positions to keep away from liquidations.

On the time of writing, the circulating provide of fUSD stands at 60,993,403 and it is buying and selling at a worth of $0.7112, which is considerably beneath its $1 peg.


Following the official launch of the primary parachains throughout the Polkadot ecosystem, the Acala decentralized finance platform launched aUSD as the primary native stablecoin for Polkadot tasks.

aUSD is an over-collateralized stablecoin that may be minted by pledging Polkadot (DOT), staked Polkadot (LDOT), Kusama (KSM), staked KSM (LKSM), Acala (ACA) or Karura (KAR) as collateral.

Pledging LDOT and LKSM as collateral permits DOT and KSM holders to proceed incomes staking rewards whereas concurrently having the ability to borrow collateral towards their holdings.

On March 23, Acala joined with 9 different parachain groups to launch a $250 million “aUSD Ecosystem Fund” that’s designed to assist early-stage startups planning to construct sturdy stablecoin use instances on any Polkadot or Kusama parachain.

As of Could 31, 6.31 million aUSD have been minted and the quantity of pledged capital locked on Acala stands at $91.53 million.

Associated: UK authorities proposes further safeguards towards stablecoin failure dangers


Origin protocol’s OUSD is a stablecoin that’s absolutely backed by extra recognizable stablecoins like USDC, USDT and DAI.

OUSD market cap progress. Supply: CoinGecko

Users can mint OUSD by pledging their stablecoin collateral on the Origin Greenback protocol and earn a yield of 12.79% by holding OUSD in a pockets. Yields which are paid to OUSD holders come from automated methods managed by sensible contracts that put the deposited funds to work in DeFi.

After briefly dropping to a low of $0.967 on Could 12 in the course of the top of the UST fallout, OUSD has, for probably the most half, maintained a worth above $0.996 and has a present circulating provide of 63,605,444.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Each funding and buying and selling transfer includes danger, you need to conduct your personal analysis when making a call.