In today’s crypto world, a few tokens are said stable. that means stable regarding a specific asset, like fiat or even BTC. Here is a compiled list of a few, with information on the way they are backed and audited. sources: https://en.wikipedia.org/wiki/Stablecoin
Types of stable coins
💵 fiat based
🪙 crypto curr based
👑 Seigniorage Style Stablecoins (also called algorithmic or synthetic)
List
| name | symbol | backed how? | audit |
|---|---|---|---|
| USD Coin | USDC | 💵 | Grant Thornton, LLP 2021 |
| Tether | USDT | 💵 | FSS 2018 2021 |
| Binance dollar | BUSD | 💵 | Withum 2021 |
| Gemini dollar | GUSD | 💵 | bpmca 2021 |
| Maker DAO dai | DAI | 🪙 300% | smart contracts |
| True USD | TUSD | 💵 | armanino 2021 |
| StableUnit | SU | 🪙 | smart contracts |
| Paxos standard | PAX | 💵 | Withum 2021 |
| Terra | UST | 👑 | smart contracts |
| Ampleforth | AMPL | 👑 | smart contracts |
| Augmint | A-EUR | 👑 | smart contracts |
| Frax | FRAX | 🪙 👑 | smart contracts |
| sUSD | sUSD | 🪙 👑 | smart contracts |
| mStable | mUSD | 🪙 👑 | smart contracts |
| Fei | FEI | 🪙 👑 | smart contracts |
Stability and risk
The criterias to evaluate the different platforms and protocols would be among the following:
- Market cap
- Trade volumes
- Time elpased since creation
- Historic standard deviation
- Type of backing
- Audit and security
Investment protocols and platforms leveraging stable coins
The serenity fund provides a weekly update for market returns on stable coin based strategies.
To hedge the risk, we can check the cost of a nexus mutual coverage for your deposit.
As example for the May 3rd weekly report, only considering the mainstream (curve and yearn), it seems BUSD v2 provides a solid return of 34% APY and is insurable by nexus mutual at 4%.