8 stable coins with native yields (USDe / USDB / BUIDL / USDM / USDY / sFRAX / stEURA / sDOLA)

Exploring the Next Generation of Stablecoins

Good morning.
This is mitsui from web3researcher.

Today we will introduce you to eight stable coins with native yields, also known as next-generation stable coins.

"Table of Contents".
🪙Premise｜Changes in the Stablecoin Market
📕TL;DR
👀Introduction to Each Project
💥Potentials and Risks
💬Reviews｜Inflation-Proof, Non-Declining Currency is Born

🪙Premise｜Stable Coin Market Transition

First, we will review the assumed market changes.

The overall market size is slightly lower than the 2022 bubble, but it is gradually reviving and has recently continued to grow slightly.

In terms of projects, USDT is the single strongest, boasting a market cap three times greater than that of USDC, which is in second place. USDe and USDB, which will be introduced today, are making remarkable strides.

On a per chain basis, Ethereum is still strong, accounting for 51% of the total.

Within this market, a project that has recently emerged as a trend is the "native-yield stablecoin. These are not only pegged at 1:1 in value, but also yield a yield just for holding the stablecoin.

The money deposited in stablecoins remains as reserves, some of which is invested and the stablecoin issuing company makes a profit from the yield. A portion of that yield is returned to the user. The system is similar to the bank deposit system, but with deposits, you have to deposit the money to receive the yield, while with stablecoins, the yield is automatically distributed for the currency you can use on a daily basis.

The image is similar to "liquid staking". You can use the LST as a token, or invest it further in DeFi.

We are now able to do this with stablecoins that are stable in value and have a growing presence in the market. Thus, this article introduces a stablecoin with native yield that has the potential to become the next generation of stablecoins.

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📕TL;DR

*Figures are as of the time of research.

👀Introduction of each project

(1)USDe