DeFi protocols launch stablecoins to attract new users and liquidity
Take a look at some of the most recent stablecoins to hit the market and what impacts they may or may not be having within Decentralized Finance.
In the wake of UST’s collapse, several DeFi platforms launched their stablecoins to lasso new users and liquidity but are investors ready to take on the risk in rescue for 20% APY?
Stablecoin projects have been moved into the spotlight over the past month as the popularity of algorithmic stablecoins and the collapse of the Terra project put a spotlight on the essential role dollar-pegged assets play in the crypto market.
In response to the void left by UST, multiple protocols have released new stablecoin projects in an effort to entice new users and capture liquidity. Typically speaking, the DeFi sector is full of widgets that are designed to entice user participation, and its potential that the recent stablecoin launch programs are simply the next trending tactic being used to extend TVL on DeFi platforms.
Let's take a look at some of the most recent stablecoins to hit the market and what impacts they may or may not be having within Decentralized Finance.
Most Recent Stablecoins that hit the market in DeFi protocols
One of the most prominent stablecoin projects to launch recently is USDD, a decentralized algorithmic stablecoin on the Tron (TRX) blockchain.
There are multiple liquidity provider pools available to USDD holders that offer 20% APY or more across diverse protocols, including JustLend, SunSwap, Ellipsis, and Curve.
Fantom recently released fUSD, its first native stablecoin, which is over-collateralized and can be minted utilizing Fantom (FTM), USD Coin (USDC), and Dai (DAI), SpiritSwap (SPIRIT), and wrapped Tether (fUSDT) as collateral.
aUSD is an over-collateralized stablecoin that can be minted by committing Polkadot (DOT), staked Polkadot (LDOT), Kusama (KSM), staked KSM (LKSM), Acala (ACA), or Karura (KAR) as collateral.
Origin protocol’s OUSD is a stablecoin that is fully backed by more recognizable stablecoins like USDC, USDT, and DAI.
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