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USDC backing, audited by a large US accounting firm: https://www.centre.io/usdc-transparency https://www.centre.io/usdc-transparency GUSD backing, also audited

USDC backing, audited by a large US accounting firm: https://www.centre.io/usdc-transparency https://www.centre.io/usdc-transparency GUSD backing, also audited by a large US accounting firm, subject to New York State Department of Financial Services regulations: https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-dollar https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-do... USDP backing, also audited by a large US accounting firm and subject to New York State Department of Financial Services regulations: https://paxos.com/usdp/ https://paxos.com/usdp/ DAI backing, viewable transparently on-chain. Currently backed 168% by collateral: https://daistats.com/#/overview https://daistats.com/#/overview LUSD backing, viewable transparently on-chain. Currently backed 189% by collateral: https://dune.com/dani/Liquity https://dune.com/dani/Liquity UST (Terra/Luna) and USDT (Tether) have/had nothing like this.

low_tech_love 4y ago
Cool, thanks a lot! But why is it then that these currencies are not as attractive or hyped as Tether and UST? Could it be that the fact they are properly backed makes them less interesting for those who want a more adventurous kind of investment?
- everfree 4y ago
  Tether is popular because it was the first stablecoin by several years (e.g. Tether launched in 2014, USDC launched in 2018). Much like Bitcoin, Tether isn't a particularly good product nowadays if you look at its fundamental properties - most of its usefulness comes from its extrinsic properties such as liquidity and demand. However, much like Bitcoin, due to its very early launch, Tether became an early schelling point that has gathered significant liquidity/usage due to network effect (liquidity begets liquidity). TerraUSD (UST) was hyped up and became popular mainly because the network paid 20% APY interest on UST deposits, which is a way higher rate on a "stablecoin" than you can get anywhere else (rates in much safer protocols are about 5-8% right now). Obviously a 20% interest rate is unsustainable when it's supported by money printed from thin air. But people were either unaware of this (unsophisticated investors), chose to overlook it (calculated risk-takers, RIP), or positioned themselves to be able to find a chair right before the music stopped (institutional investors like Celsius).
  - low_tech_love 4y ago
    Just wanted to thank you again for all the valuable information. It’s certainly food for thought during a couple of coffee breaks!

low_tech_love 4y ago

Cool, thanks a lot! But why is it then that these currencies are not as attractive or hyped as Tether and UST? Could it be that the fact they are properly backed makes them less interesting for those who want a more adventurous kind of investment?

everfree 4y ago
Tether is popular because it was the first stablecoin by several years (e.g. Tether launched in 2014, USDC launched in 2018). Much like Bitcoin, Tether isn't a particularly good product nowadays if you look at its fundamental properties - most of its usefulness comes from its extrinsic properties such as liquidity and demand. However, much like Bitcoin, due to its very early launch, Tether became an early schelling point that has gathered significant liquidity/usage due to network effect (liquidity begets liquidity). TerraUSD (UST) was hyped up and became popular mainly because the network paid 20% APY interest on UST deposits, which is a way higher rate on a "stablecoin" than you can get anywhere else (rates in much safer protocols are about 5-8% right now). Obviously a 20% interest rate is unsustainable when it's supported by money printed from thin air. But people were either unaware of this (unsophisticated investors), chose to overlook it (calculated risk-takers, RIP), or positioned themselves to be able to find a chair right before the music stopped (institutional investors like Celsius).
- low_tech_love 4y ago
  Just wanted to thank you again for all the valuable information. It’s certainly food for thought during a couple of coffee breaks!