Euro Stablecoins Struggle: Can Liquidity Pools Offer a Fix?

Stablecoins. $235 billion riding on digital steadiness. Most are USD-backed, like $USDT and $USDC. But what about the euros, francs, and Singapore dollars? They want in. The problem? Liquidity. Or, rather, the lack of it. Like a lemonade stand in the Sahara. Great lemonade, no customers. ๐Ÿ‹

TL;DR
- USD-backed stablecoins rule due to high liquidity. Non-USD coins struggle.
- Solutions? Deep liquidity pools and better AMM algorithms.

The euro struggles. EUR-backed coins exist, waiting. But few places use them. Fewer trading pairs. Itโ€™s a chicken-and-egg thing. The chicken is on strike. Centralized market makers? Not interested. Not enough profit. They chase $USDT and $USDC. Volume talks. Regulation helps, maybe. The EU's MiCA? Good start. Not magic.

The real fix? Make liquidity profitable. $USDT and $USDC have hundreds of billions. Euro coins? Peanuts. A gulf so wide, it's funny. We need new algorithms. New ways to grease the wheels. Deep liquidity pools between USD and non-USD coins are key. Easy swaps are essential. Refine those AMMs. Incentives matter.

Non-USD stablecoins might find niches. Cross-border stuff. On-chain forex. Decentralized lending. Global businesses could use them. Borrow euros, keep dollars. Makes sense. Maybe someday, the dollar won't be the only game. Liquidity pools could be stores of value. A decentralized world? A long shot. But crypto is wild. A little competition? Never hurts. ๐Ÿค”

What do you think? Will non-USD stablecoins ever truly compete?

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