Opinion: The narrative of stablecoins has basically formed a situation of three equally important parties.

Author: Chen Mo Source: X, @cmdefi

USDT/USDC

Centralized stablecoin, in the era of Qin Shihuang, unified pricing unit for Crypto

DAI/crvUSD/GHO/FRAX

Over-collateralized, DeFi native stablecoin, the result of balancing the impossible triangle

USDe/iUSDe

Income-type structured dollars complement traditional portfolio returns.

All three are complementary and are expected to remain stable for 1-2 cycles:

1. Centralized stablecoins serve as the most liquid and widely used means of payment and transaction. Algorithmic stablecoins are an X factor that has its shining moment during the LUNA period, but history has proven that they are difficult to anchor to the US dollar. AMPL has also broken free from the shackles of anchoring and transformed into an anti-inflation accounting unit. OHM has also transformed into a reserve currency, and non-anchored algorithmic stability will exist in a special form.

2. DeFi native stablecoins are usually protocol-level, making full use of on-chain lending, trading, mining and other scenarios to provide income for their own stablecoins. Currently, their volume is limited, but their interest rates are the best indicator of the real state of the chain.

3. USDe/iUSDe is a force that has risen in this cycle and currently monopolizes the high-yield scene. Apart from individual arbitrage opportunities, most high-yield stablecoins are related to it, or they adopt projects with similar mechanisms. Its advantage lies in the fact that the Basis Trade yield is usually negatively correlated with traditional market interest rates. When traditional interest rates fall ( in a rate-cutting environment ), it may mean that the sUSDe/iUSDe yield rises ( and the funding rate rises ). This allows Crypto to provide a rich selection of yields in different market environments.