The stablecoin market size exceeds 205 billion USD, USDT's market share declines, and a diversified stablecoin landscape is forming.

![\Wangou 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 and USDC are currently the two most mainstream traditional stablecoins.

USDT (Tether)

Issuer: Tether Launch time: 2014 Value pegging: pegged to the US dollar at a 1:1 ratio, backed by reserve assets. Market position: One of the earliest launched, largest trading volume, and most liquid stablecoins globally. Controversy: The transparency of reserve audits has always attracted attention.

USDC (USD Coin)

Issuer: Founded by Circle and Coinbase, regulated by the Centre Consortium. Launch date: 2018 Compliance: Strictly adhere to US regulatory requirements with high transparency of reserve assets. Value pegged: pegged to the US dollar at a 1:1 ratio, with reserves consisting of cash and short-term government bonds. Market position: The second largest stablecoin after USDT, highly favored by institutional users.

FDUSD (First Digital USD)

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

DAI

Issuer: MakerDAO Launch time: 2017 Value pegging: Pegged to the US dollar 1:1 through smart contracts and collateral mechanisms. Operating Network: Ethereum and EVM-compatible blockchains Features: decentralized, over-collateralized stablecoin

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

New Stablecoin

The new type of stablecoin not only maintains a relatively stable price but also provides additional investment returns for holders.

Main Features:

1. Provide returns through low-risk asset investments, staking native tokens, or structured financial strategies.
2. Maintain price stability and high liquidity
3. Combine on-chain assets with off-chain funds, bonds, etc.

1. USDe

The synthetic US dollar stablecoin developed by Ethena Labs currently ranks third in the stablecoin market by market capitalization.

Operating Mechanism:

• Maintain a 1:1 peg to the USD through a Delta neutral strategy
• Whitelisted users can mint USDe with crypto assets.
• Ordinary users can purchase USDe with stablecoin assets.

Source of Income:

• Staking rewards: Earnings generated by using liquid staking tokens as collateral.
• Funding rates and basis income: Returns from perpetual contracts and the futures market

![\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

2. USD0

The stablecoin of Usual Protocol stablecoin agreement is issued 1:1 with RWA assets as reserves.

Operating Mechanism:

• Users deposit assets to obtain LDT synthetic assets
• LDT can be freely traded, representing the original assets deposited in the protocol.
• Introduce government bonds and other RWA assets to improve liquidity and security.

3. Sky Dollar (USDS)

The new stablecoin launched by MakerDAO after its rebranding to Sky coexists with the existing DAI.

• DAI can be exchanged 1:1 for USDS
• MKR can be exchanged for SKY at a ratio of 1:24000
• 600 million SKY are allocated to USDS holders each year.

4. USDD (Decentralized USD)

The decentralized super-collateralized stablecoin initiated by the Tron Union Reserve circulates across multiple public chains.

5. BlackRock USD (BUIDL)

The first tokenized fund launched by BlackRock on the Ethereum network.

Operating Mechanism:

• Issuing tokenized shares through Ethereum
• Invest in low-risk financial instruments such as cash, US Treasury bonds, and repurchase agreements.
• Expanded to multiple blockchain networks

Source of Income:

• Daily accrued earnings, distributed monthly
• The current yield is approximately 4.5%

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

6. Ondo US Dollar Yield (USDY)

Yield-generating USD token launched by Ondo Finance.

Operating Mechanism:

• Supported by short-term U.S. Treasury bonds and bank demand deposits
• For non-U.S. investors only, 40-day lock-up period

Source of Income:

• Underlying Asset Yield
• Compound interest earnings

7. USDX Money (USDX)

The stablecoin issuance protocol launched by Stables Labs.

• Earn income through the Delta neutral investment strategy
• Provide a wider range of coin options, with higher returns but also greater risks.

8. Frax (FRAX)

A stablecoin protocol that combines partial collateralization and algorithmic mechanisms.

Operating Mechanism:

• Partial collateralization and algorithmic stability hybrid mechanism
• Introduce algorithm market operation controller ( AMO )

Source of Income:

• Interest income
• Liquidity Mining
• Governance token FXS

![\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

9. Resolv USD (USR)

Use ETH and derivatives collateral to hedge operations and protect assets.

Source of income:

• ETH Staking Rewards
• Hedge operation price difference

10. M By M⁰ (M)

Decentralized stablecoin protocol that allows users to earn yield from their collateral holdings.

Operating Mechanism:

• Collateral and Minting
• Custody and On-chain Verification
• Delayed Minting and Penalty Mechanism

Source of Income:

• Passive income generated from collateral
• Minting Fee
• Fine

11. yala

The stablecoin protocol based on the Bitcoin ecosystem is currently in the testing phase.

Operating Mechanism:

• Users deposit BTC or UTXO assets and borrow stablecoin $YU
• Asset appreciation through collaborative DeFi protocols
• Withdraw original BTC and additional earnings

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

Stablecoin Market Outlook

The stablecoin market is massive and serves as the cornerstone of DeFi and the future PayFi. In the short term, stablecoins backed by fiat currencies such as USDT/USDC will continue to dominate. New types of stablecoins can be mainly categorized into two types:

1. Using traditional financial assets as reserves, the returns are relatively stable but not high.
2. Maintain stability through arbitrage, but there are transparency and regulatory issues.

The market value of stablecoins has further growth potential, but one must be cautious of the risks associated with the repeated calculation of reserves. For individual investors, it is advisable to pay attention to emerging stablecoin protocols to obtain potential airdrops and staking rewards, but one should approach investments in platform coins with caution.

![\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 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 value of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diversification of stablecoins in one article

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