Stablecoin projects have come into the spotlight in the past month, as the popularity of algorithmic stablecoins and the collapse of the Terra project have brought to the fore the important role that dollar-pegged assets play in the equity market. cryptocurrencies.
In response to the void left by UST, multiple protocols have launched new stablecoin projects in an effort to attract new users and liquidity. In general, the DeFi sector is full of tricks designed to attract user participation and it is possible that the recent stablecoin launch programs are simply the next trending tactic being used to boost TVL on decentralized finance platforms.
Let’s take a look at some of the newest stablecoins to hit the market and the impact they may or may not have within the DeFi ecosystem.
USDD
One of the biggest stablecoin projects to launch recently is USDD, a decentralized algorithmic stablecoin on the Tron blockchain. Since its launch on May 5, USDD has seen rapid growth in terms of its circulating supply, which currently stands at around 601.86 million, and its integration into the Tron ecosystem is relatively widespread.
USDD is also found on the Ethereum (ETH) and BNB Chain (BSC) network, which has helped to increase the distribution of the tokens and provide additional yield opportunities.
There are multiple pools of liquidity providers available to USDD holders that offer 20% APY or more through various protocols, including JustLend, SunSwap, Ellipsis, and Curve. In the time since the launch of USDD, the price of TRX has risen 17% from $0.07 to its current price of $0.0818, after briefly reaching a high of $0.092 on May 31.
fUSD
Fantom recently launched fUSD, its first native stablecoin, which is overcollateralized and can be minted using Fantom (FTM), USD Coin (USDC), Dai (DAI), SpiritSwap (SPIRIT), and Wrapped Tether (fUSDT) as collateral.
The new @FantomFDN‘s native stablecoin, $fUSD…
Brings all the goodness of decentralization while delivering stability:
✅Governed by the community.
✅Full transparency.
✅Overcollateralized stability.Plus, new collateral assets you’ll be happy to see!
– Stader.Fantom (@stader_ftm) May 25, 2022
In an effort to attract more liquidity, the Fantom Foundation has set the fUSD staking reward at 11.3% and created an fUSD to USDC exchange interface that allows users to buy fUSD and redeem their positions to avoid liquidations.
At press time, the circulating supply of fUSD is 60,993,403 and it is trading at a price of USD 0.71, well below its parity of USD 1.
aUSD
Following the official launch of the first parachains within the Polkadot ecosystem, decentralized finance platform Acala launched aUSD as the first native stablecoin for native Polkadot projects.
aUSD is an overcollateralized stablecoin that can be minted by using Polkadot (DOT), staked Polkadot (LDOT), Kusama (KSM), staked KSM (LKSM), Acala (ACA), or Karura (KAR) as collateral.
Using LDOT and LKSM as collateral allows DOT and KSM holders to continue earning staking rewards while also being able to borrow collateral against their holdings.
On March 23, Acala joined nine other parachain teams to launch a $250 million “aUSD Ecosystem Fund” that is designed to support early-stage startups planning to build strong use cases for the stablecoin in any Polkadot or Kusama parachain.
Acala, nine parachain teams, and a group of venture funds have launched the $250 million ‘aUSD Ecosystem Fund’ ï¸
The fund is seeking early-stage projects from any @Polkadot or @KusamaNetwork parachain with strong $aUSD stablecoin use cases https://t.co/OJ2V47ZUry pic.twitter.com/NDgLg2bG8N
— Acala (@AcalaNetwork) March 23, 2022
As of May 31, 6.31 million aUSD have been minted and the amount of committed capital locked in Acala amounts to USD 91.53 million.
OUSD
Origin Protocol’s OUSD is a stablecoin that is fully backed by more recognizable stablecoins like USDC, USDT, and DAI.
Users can mint OUSD using their stablecoin collateral on the Origin Dollar protocol and earn a 12.79% return for holding OUSD in a wallet. Returns paid to OUSD holders come from automated strategies managed by smart contracts that put deposited funds to work on DeFi protocols.
After briefly falling to a low of $0.967 on May 12 during the height of the UST decline, OUSD has mostly held a price above $0.996 and has a current supply of 63,605,444.
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