The hottest Stablecoins Substack posts right now

And their main takeaways
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Top Finance Topics

Ethena: Fundamentally Flawed?

DeFi Education • 819 implied HN points • 21 Feb 24
🔮 Crypto Decentralized Finance Stablecoins Ethereum Trading Strategies Risk management
  1. Ethena aims to provide attractive yields through a unique trading strategy that combines staking ETH and selling futures contracts. This could help users earn money while managing risk.
  2. There are concerns about Ethena's design, including the fact that it relies on staked ETH, which carries more risks. If things go wrong, users might face significant losses.
  3. While Ethena might seem like a good option now, it's important for investors to be cautious and understand the risks involved, as past attempts in this area have often failed.

Ethena Drama

DeFi Education • 559 implied HN points • 05 Apr 24
🔮 Crypto Stablecoins Tokenomics DeFi Investing Yield Farming
  1. Ethena’s new stablecoin called sUSDe focuses on giving investors returns from off-chain trading, similar to how hedge funds operate.
  2. Ethena recently launched its token ENA, which has reached a total value of $15 billion when fully diluted.
  3. An airdrop of 5% from Ethena's total supply is worth about $750 million and makes up a significant part of its offering.

Stablecoins: The Next Financial Platform

The Generalist • 2922 implied HN points • 16 Jul 23
💰 Finance Stablecoins Cryptocurrency Business Regulation Innovation
  1. Stablecoins solve real problems like moving value across borders quickly and cheaply.
  2. Stablecoins have signs of product-market fit with $125 billion in circulation and 1 million daily active wallets.
  3. Stablecoins are viewed as a financial infrastructure layer, serving as a platform for open, cheap, and programmable global payments system.
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Long Take: FDIC consent order vs. $3B banking-as-a-service champion Cross River Bank

The Fintech Blueprint • 609 implied HN points • 03 May 23
💰 Finance Banking Regulation Crypto Stablecoins Financial Crisis
  1. The FDIC is closely monitoring banking practices to ensure systemic stability during a crisis.
  2. Cross River Bank, a $3B banking-as-a-service champion, is under scrutiny and must comply with a consent order.
  3. Regulators are concerned about fintech companies entering the banking sector without proper oversight.

Long Take: How Wise disrupted $150T of Cross-Border Payments and earns $1B in revenue

The Fintech Blueprint • 511 implied HN points • 18 Oct 23
💰 Finance Payments Valuations Stablecoins DeFi Investments
  1. Wise disrupted the costly traditional cross-border payment system by using a peer-to-peer platform and offering transparent, low fees.
  2. The company earned $1.2B in revenue in 2021 with a significant portion coming from its margin on FX transfers.
  3. Wise's growth and profitability are driven by its innovative approach to simplifying and optimizing cross-border transactions.

DeFi: Frax Finance completes V3 rollout with on-chain bonds

The Fintech Blueprint • 275 implied HN points • 25 Jan 24
💰 Finance DeFi Digital Assets Stablecoins NFTs
  1. Frax Finance introduces on-chain bonds called FXBs, resembling zero-coupon bonds and converting to FRAX stablecoin upon maturity.
  2. The emergence of interest-bearing stablecoin projects like sFRAX and USDe is likely to shift focus from non-interest paying stablecoins like USDT.
  3. There has been a significant growth in Total Value Locked (TVL) in tokenized securities with U.S. Treasury exposure, reaching around $790MM.

Introduction to crvUSD

DeFi Education • 459 implied HN points • 19 Jul 23
🔮 Crypto DeFi Stablecoins Blockchain Smart Contracts Investing
  1. Curve Finance is a platform that helps users swap cryptocurrencies, especially stablecoins, and has launched a new stablecoin called crvUSD. This stablecoin is in beta testing and has gained over $100 million in total value locked.
  2. crvUSD introduces a unique 'soft liquidation' process that gradually adjusts collateral value instead of sudden sell-offs, which can protect users from significant losses when market conditions change.
  3. The crvUSD stablecoin will aim to maintain its value peg through smart contracts called PegKeepers and a dynamic borrowing rate system, but comes with inherent risks due to its newness and experimental nature.

MakerDAO Update

DeFi Education • 439 implied HN points • 07 Jul 23
🔮 Crypto DeFi Governance Stablecoins AI
  1. MakerDAO is undergoing a major governance change to improve its system. This will help make it more user-friendly and efficient.
  2. They are planning to integrate AI and invest more in real-world assets. This could open up new opportunities for growth.
  3. MakerDAO aims to be a reliable decentralized stablecoin provider with competitive interest rates. This is important for attracting more users and trust.

New Stablecoin Challenger - GHO

DeFi Education • 399 implied HN points • 12 Jul 23
🔮 Crypto Stablecoins DeFi Lending Finance Blockchain
  1. GHO is a new stablecoin by Aave, aimed at competing with existing stablecoins like DAI. It will charge a lower borrowing fee of 1.5% compared to MakerDAO's 3.5%.
  2. Aave needs to create demand for GHO to be successful. Without incentives or market makers, people might not want to hold or use GHO.
  3. The security of GHO has issues, as some audits pointed out potential problems in the code. This raises concerns about how reliable it will be for users.

Gresham’s Law: Bad Money Drives Out Good

DeFi Education • 1159 implied HN points • 15 May 22
🔮 Crypto Blockchain DeFi Stablecoins Liquidity Finance
  1. Gresham's Law shows that bad money tends to push out good money from the market. When people have a choice, they'll use the less valuable currency to keep the better one for themselves.
  2. In the context of decentralized finance (DeFi), imbalances in pools can affect liquidity and price stability. For instance, if one stablecoin in a pool loses its value, it can lead to issues for the whole pool.
  3. Using AMMs (Automated Market Makers) like Curve for swapping stablecoins is crucial for providing on-chain liquidity. Efficient liquidity helps maintain fair prices and trading in the crypto market.

Why stablecoins matter to democracy and domestic debt

Alex's Personal Blog • 32 implied HN points • 22 Oct 24
🔮 Crypto Stablecoins Blockchain Digital Currency Financial Technology Payments
  1. Stablecoins provide a safe way for people in countries with unstable currencies to access reliable money. This can help them protect their savings from inflation and financial mishaps.
  2. Using stablecoins can promote the use of the U.S. dollar globally, which is good for the American economy and its status as a superpower. More transactions in dollars mean more strength for the U.S. currency.
  3. The growth in stablecoin use is expected to continue as tech advances, making it easier for people to access these digital dollars and benefit from better financial opportunities.

How to Earn Higher Interest Than Banks with Fantom DeFi - Hint Banks Are Zeros.

DeFi Education • 1019 implied HN points • 12 Jan 22
🔮 Crypto DeFi Investing Yield Farming Stablecoins Blockchain
  1. Using Fantom DeFi, you can earn higher interest on your savings compared to traditional banks. Depositing stablecoins, like USDC, can give you returns up to 13% a year.
  2. Fantom’s blockchain allows for very low transaction fees and fast transactions, making it user-friendly. It's compatible with popular wallets like Metamask and platforms like Curve and Yearn.
  3. While the yield farming options are good now, they may not last forever. The DeFi space is competitive, and it’s beneficial to start early to make the most of these high yields.

Stablecoins: Reinventing Dollars

DeFi Education • 919 implied HN points • 10 Dec 21
🔮 Crypto Stablecoins DeFi Finance Blockchain Assets
  1. Stablecoins are a type of cryptocurrency that is usually backed by another asset, like the US dollar. They help make trading easier and allow people to transfer money quickly and cheaply.
  2. There are different types of stablecoins, like centralized ones (USDT and USDC) that are backed by fiat currency, and decentralized ones (DAI) that use overcollateralization to maintain their value. Each type has its pros and cons.
  3. Stablecoins play an important role in the crypto world and traditional finance. There is lots of interest in creating better decentralized stablecoins, as they could improve the overall system and reduce reliance on centralized finance.

Liquity: Don't Chicken Out of Stables

DeFi Education • 479 implied HN points • 27 Sep 22
🔮 Crypto Stablecoins Decentralization Blockchain Governance
  1. Liquity is a unique stablecoin protocol that operates without governance, making it fully decentralized. This means no single entity can control it, which adds to its security.
  2. The only accepted collateral for Liquity is Ethereum (ETH), which is a distinctive feature compared to other stablecoins that might accept various assets.
  3. Despite recent challenges in the stablecoin market, it's important to stay informed and explore options like Liquity for stablecoin needs. They still hold potential value in the DeFi space.

Frog Nation Series Finale: How it All Connects

DeFi Education • 819 implied HN points • 14 Jan 22
🔮 Crypto DeFi Protocols Yield Farming Stablecoins Finance
  1. Frog Nation connects different finance applications to help users manage their assets better. It's like having a network of tools to boost savings and investments.
  2. Spell/MIM is a system where you can put in your earnings to borrow a stable currency, making it easier to access funds when you need them.
  3. Popsicle Finance acts like a smart assistant for your investments by helping you get better returns and manage yields efficiently.

PYUSD

Confronting the Future • 137 implied HN points • 07 Aug 23
💰 Finance Blockchain Stablecoins Payments Regulation Crypto
  1. Stablecoins like PYUSD are becoming inevitable in the global financial landscape.
  2. Public blockchains erode monopolies and offer new options for value exchange.
  3. Introduction of PYUSD by PayPal will lead to legislative action, regulatory scrutiny, and talent demand in the stablecoin space.

Systemic Incentives

Confronting the Future • 137 implied HN points • 30 Aug 23
💰 Finance Banking Stablecoins Financial system Inclusion Competition
  1. When you deposit money into your checking account, the bank can use it however they want and only pay you a tiny amount, like 0.42% on average.
  2. Using stablecoins backed by short-dated T-bills can eliminate subsidizing risky borrowers, black box bank solvency issues, and slow payment transfers.
  3. Stablecoins may revolutionize the financial system by ensuring users do not subsidize risky borrowers, avoiding complex bank solvency risks, and eliminating legacy payment delays.

Curve Overview - (Part 1 of 2)

DeFi Education • 899 implied HN points • 04 Aug 21
🔮 Crypto Blockchain DeFi Stablecoins Exchanges Investing
  1. Curve is a decentralized exchange focused on stablecoins. This means users can trade without middlemen, making it easier to swap currencies.
  2. The project is closely connected with Yearn Finance, which was discussed in previous posts. Understanding both can help with grasping DeFi concepts.
  3. This article is part of a series, suggesting that there will be more detailed information on Curve in upcoming parts. It's good to follow along for a complete picture.

Maker DAO (Part 1) - Rolling the DAI

DeFi Education • 779 implied HN points • 14 Sep 21
🔮 Crypto Blockchain DeFi Stablecoins Decentralization Finance
  1. MakerDAO lets you create DAI, a stablecoin, by using your crypto assets as collateral without selling them. It provides a way to access funds while keeping your investments.
  2. To borrow money through MakerDAO, you need to put up more value in crypto than you want to borrow, which helps protect lenders.
  3. If the value of your collateral drops too much, MakerDAO will liquidate it to ensure loans are paid back, so it's important to keep an eye on your collateral's value.

FRAX: The Fractional Algorithmic Stablecoin (Pt. 2)

DeFi Education • 639 implied HN points • 14 Dec 21
🔮 Crypto Stablecoins DeFi Valuation Risks Market Analysis
  1. Frax is a unique type of stablecoin that combines both fractional and algorithmic features. This means it aims to maintain a stable value while also using smart contracts to help adjust its supply.
  2. In just six months, Frax's financial mechanisms, known as AMOs, made over $50 million in profits. That's a big boost in a short time, showing its potential for growth.
  3. There are benefits to using Frax, but there are also risks involved. It's important for users to understand both sides before getting involved.

Maker Financials + Aave GHO

DeFi Education • 379 implied HN points • 14 Jul 22
🔮 Crypto Blockchain DeFi Stablecoins Protocols Finance
  1. MakerDAO is known for creating DAI, a popular stablecoin in the DeFi space. It's a big player in decentralized finance and is being closely watched by investors.
  2. Aave has introduced a new stablecoin called GHO. This is part of the ongoing trend of stablecoin development in the decentralized finance market.
  3. The discussion around Maker and Aave highlights the evolving nature of DeFi, where new products and updates can quickly shift how users engage with these financial systems.

FRAX: The Fractional Algorithmic Stablecoin (Pt. 1)

DeFi Education • 459 implied HN points • 14 Dec 21
🔮 Crypto Cryptocurrencies Blockchain DeFi Stablecoins
  1. FRAX is a new type of stablecoin that uses a unique algorithm to maintain its value. It aims to be more flexible than traditional stablecoins.
  2. The concept of fractional algorithmic stablecoins like FRAX shows how cryptocurrency can innovate to stay stable in value.
  3. Understanding stablecoins like FRAX can help people make better decisions in the world of cryptocurrency and decentralized finance.

Zen and the Art of CBDC Analysis (Part 1)

Altered States of Monetary Consciousness • 1 HN point • 13 Feb 23
💰 Finance Central Bank Digital Currency Banking Sector Stablecoins
  1. Economies are supported by layers of money from the government, banking sector, and corporations, providing choices to citizens.
  2. The concept of a cashless society has evolved with the emergence of central bank digital currency (CBDC), sparking increasing interest and discussion.
  3. The development of CBDCs highlights a complex interplay between private sector interests, potential threats to financial stability, and the evolving role of central banks in the modern financial landscape.

Tether’s Ascent: Breaking Down the Dominant Stablecoin's Growth

Coin Metrics' State of the Network • 0 implied HN points • 23 Jan 24
💰 Finance Stablecoins Adoption
  1. Tether's supply has reached new heights, with significant growth and expansion on various blockchain networks.
  2. Tether is gaining popularity in decentralized finance (DeFi) applications, particularly in smart contracts and money markets.
  3. Tether's usage patterns show widespread adoption, especially in emerging markets, and its nature as a stablecoin facilitates trusted digital asset trading on exchanges.

Coin Metrics’ State of the Network: Issue 198

Coin Metrics' State of the Network • 0 implied HN points • 14 Mar 23
💰 Finance Stablecoins Cryptocurrency Regulation Digital Assets Market Analysis
  1. Coin Metrics released a report detailing methods to detect fake volume across exchanges.
  2. The FDIC takeover of Silicon Valley Bank impacted stablecoins like USDC and led to market speculation.
  3. On-chain activity surged, especially with stablecoins housed in the Ethereum network, in response to the FDIC's announcement.