According to the issuance method, stable coins can be roughly divided into four types:
1, a stable currency issued by mortgage legal tender.
USDT and USDC are tokens issued by regulated financial institutions and have the right to convert 1: 1 into US dollars. Teda Coin (USDT) is launched by Taisuo Company, and USDC is issued by Round and Bitcoin bases. Both tokens claim to have a reserve ratio of 65,438+000% as a mapping of real-world dollars. They are the most widely used, stable and most valuable coins in the blockchain.
2. The stable currency forged by mortgage digital assets.
Dai is a decentralized and over-mortgaged stable currency set up by Maker, which is cast by mortgaging some assets. Its mortgaged assets are assets recognized by Maker as collateral, such as ETH and BAT. If the major communities approve, Dai can vote by mortgage. Note that this is an excess mortgage. For example, in the system of mortgaging $65,438+050 of ETH to Dai, we can only get Dai worth $65,438+000.
How does it ensure that Dai is converted into 1: 1 USD? When Dai falls below the mortgage line, it will trigger liquidation. For example, if ETH falls to 120 USD, it will trigger the liquidation line. At this time, the MAKER system will auction ETH to the market, and the Dai obtained from the auction will be used for destruction, thus maintaining the dynamic balance of the whole system and the stability of Dai as a unitary value.
PUSD is a stable dollar-bound currency issued by Mixin project team as collateral, and its principle is similar to Dai. Because the mortgage rate is 200%, and it is distributed, and the collateral is managed by multiple teams and multiple signatures, the risk is lower than the stable currency issued by centralized companies.
3. The algorithm stabilizes currency 1.0.
Ampleforth (AMPL) has no mortgage assets and no subject credit endorsement, and relies entirely on algorithms to realize the fluctuation near the anchor price. The anchored price of AMPL is $20 19, which will decrease with the increase of CPI. In a certain range, when it is higher than the anchor price, it will trigger additional issuance and send new AMPL to all AMPL addresses. When it is below the threshold, for example, it is below 0.
4. The algorithm stabilizes coins 2.0 and 3.0.
The extension Basis of AMPL adopts rebase (which can be understood as the rebalancing of token supply) mechanism, which has the characteristics of decentralization. There are some mechanisms to solve the problem of AMPL death spiral.
Advantages of a stable currency:
First, it provides a golden channel between legal tender and cryptocurrency, which is also the most important application scenario. Affected by the policy, the general exchange does not support the direct transaction of cryptocurrency in legal tender (RMB/USD, etc.). ). At present, the mainstream exchange legal tender transactions support the exchange of RMB and USDT. After purchasing USDT in RMB, users can use USDT to purchase other cryptocurrencies.
The second is to counter the risk of the decline of traditional cryptocurrency. As mentioned above, the birth of a stable currency comes from this, so it naturally has a stable advantage. Because the price of currency is stable, it can be used in daily payment and transaction scenarios, which is no different from common legal tender.
Third, unlike the general cryptocurrency, the stable currency has a value base because there are mortgage assets behind it.
Fourth, it can provide sufficient liquidity for the exchange. Compared with other mainstream markets, cryptocurrency is still a niche market. The birth of a stable currency helps to attract large-scale capital.
Disadvantages of stable currency:
Centralized issuance leads to the opacity of mortgage assets, such as USDT, which is reported to be more thunder and less rain every day. The decentralized issuance of mortgage cryptocurrency also has the risk of large fluctuations in the price of collateral. Therefore, there is still a long way to go to stabilize the currency in the future.