Stablecoin War 🔥

From #USDT to #USDC , from #DAI to @Ethena, stablecoins have become the 'invisible hand' behind this bull market. This is a story of the integration and evolution of the dollar and the crypto world, and one of the most profitable crypto narratives 👇

1: The Birth of Stablecoins

The story begins with USDT @Tether_to, launched by the Bitfinex team, which promised 1 USDT = 1 USD, solving the 'lack of fiat channels' problem for exchanges. However, #USDT has always been accompanied by controversies regarding 'whether there are real dollar reserves'. Even now, USDT remains the largest stablecoin in the crypto market, even though it is a black box.

2: The Compliance Faction Emerges

USDC #TUSD and @Paxos have emerged because USDT is too profitable, and with its black box shortcomings, compliant stablecoins backed by the US banking system have gradually appeared. Thus, stablecoins entered the digital dollar era, and exchanges like Coinbase and Binance began to support their partners.

3: The Exploration of Decentralized Stablecoins (Algorithmic Stability)

The rise of #DAI led by MakerDAO opened the 'algorithmic stability' era, generating stablecoins through collateralizing assets like #ETH, USDC, #BTC, etc. However, as USDC became increasingly 'centralized', #UST eventually peaked, and the market saw a collapse in 2022 that also brought down the entire market. The market has since returned to an extremely cautious state regarding 'non-collateralized' stablecoins.

4: Yield-bearing Stablecoins

#USDE utilizes delta-neutral arbitrage to generate stablecoins while early users received annualized returns of 25%+; combined with the sats airdrop strategy, TVL surged. This was the first large-scale validation of 'yield-bearing stablecoins'.

USDT still firmly holds the leading position, USDC seeks to go public, US Treasury bonds become the consensus, #USDE relies on yield and airdrops to rapidly absorb TVL, and #FDUSD is tied to Binance's traffic. This war without gunpowder has once again begun; whoever wins the stablecoin battle wins the liquidity.