⚡Dynamo DeFi Pro - 06/13/24

On-chain insights and DeFi strategies

Premium Dynamo DeFi subscribers receive a weekly Dynamo DeFi Pro newsletter, where I share:

1. Latest crypto market trends

2. Trending protocols and chains from on-chain data

3. Current DeFi strategies that I’m using

Other benefits of Dynamo DeFi Pro include:

• Access to a Discord community

• A monthly group Zoom call

• Long form research articles

• Guided research videos

💡Dynamo’s Thoughts

The New Stablecoin Wars

The stablecoin wars have returned. Back in 2021 and 2022 there was fierce competition to create the premier crypto-native stablecoin.

DAI had long been the leading crypto-native stable, but, amidst concerns about its USDC backing, some players in the crypto ecosystem sought out alternatives. Eventually, several alternatives arose: Terra’s ill-fated algorithmic UST, Abracadabra’s MIM backed by yield-bearing assets, and Frax Finance’s partially algorithmic FRAX were leading contenders. The chief battlefield in these stablecoin wars was liquidity on Curve Finance.

Eventually UST became the largest stablecoin outside of USDT and USDC, commanding billions of dollars in market cap and massive amounts of liquidity (until it didn’t). The story of how this ended is well-known at this point. Now, two years later, it’s worth asking again, what does the future of the stablecoin landscape look like?

What Makes a Good Stablecoin

Why would you choose one stablecoin over another? Why not stick to USDT and USDC?