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Stable Coins

USDT vs. USDC vs. BUSD: What are the similarities and differences?

What is a Stablecoin? (How they work - ANIMATED) - YouTube

  • Tether (USDT) - What is Tether? USDT Stablecoin - How it works + MAJOR Issues - YouTube
  • USD Coin (USDC)
  • Binance USD (BUSD)
  • Dai
  • Wrapped Bitcoin
  • LEO Token
  • Shiba Inu
  • Lido Staked Ether (Lido Staked ETH | CoinMarketCap)
  • FTX Token
  • Algorithmic Stablecoins - Luna / Terra
  • Ethena USDe
    • Ethena USDe (USDe) is a synthetic dollar protocol built on Ethereum, designed to offer a stable, censorship-resistant, and scalable solution for digital assets. One of its primary applications is providing a stablecoin solution that is not reliant on traditional banking systems. This makes it particularly useful in decentralized finance (DeFi) as a savings asset, allowing users to earn yield through various DeFi protocols.
    • Ethena also introduces the concept of the 'Internet Bond,' a globally accessible dollar-denominated savings instrument. This bond combines yield derived from staked Ethereum with the funding and basis spread from perpetual and futures markets. The result is a unique on-chain crypto-native bond that offers users a stable and reliable savings option, independent of traditional banking systems.

Stablecoin Algorithms​

Rebase / Debase​

Rebasing is this term where the coins are self aware of their price and will do something to make sure they go back to $1 if they aren’t. In short, here is what they will do. If they are more than a dollar, money printer go brrrr, and they give everyone more free tokens so that each token is worth $1. So if you hold .0001% of all tokens… when they rebase to get the peg back to the dollar, you will get .0001% of how many free tokens they printed. This way you don’t change the actual value of how much money you have, you just change how much the tokens are worth individually, so everyone has the same amount of money, just a different number of tokens so the price equals $1.

Debasing is the term for the opposite. If the value is under $1, they will actually take away equally the number of tokens from everyone’s wallet. In the case of rebasing and debasing, it doesn't matter if the tokens are in your cold wallet or on an exchange, wherever they are, the amount in that wallet will effectively change over time so that the price of the coin stays $1.

  • Supply Volatility

Seigniorage Coins​

All Seignorage coins fail

Seignorage is the term to describe the profit that banks make between printing money and what the money is actually worth. So a dollar might cost $.03 to print, but be worth $1… which means the seignorage is 97 cents.

Examples

  • Basis Cash
  • ESD (Empty Set Dollar)

Fractionally Algorithmic Stablecoin​

Fractional stablecoin is a type of cryptocurrency that is collaterally backed and algorithmically stabilized. Fractional stablecoin protocols may vary in their options for collateral backing, with some using liquidity or partially allowing redemptions.

3 Stablecoin Algorithms Explained (Rebase, Empty Set Dollar, Basis Cash, Iron Finance) - YouTube

3 Algorithmic Stablecoins Explained - WhiteboardCrypto

3 MAIN Types of Stablecoins Explained - YouTube