TOP-5 popular stablecoins with the largest capitalization:
- Tether (USDT ticker), capitalization $80,049,553,728, Tether issuer
- USD Coin (ticker USDC), capitalization $52,608,675,088, Circle and Coinbase issuer
- Binance USD (ticker: BUSD), capitalization $17,975,822,517, issuer Binance
- TerraUSD (ticker: UST), capitalization $13,885,901,896, issuer Terra
- Dai (ticker symbol DAI), capitalization $9,895,467,031, issuer Makerdao
BUSD, USDT, USDC
The most common and liquid on the market. They have huge coverage of traded currency pairs and are widely represented on exchanges. The crypto community trusts these stablecoins due to several years of successful use.
Veles now also works with USDT and BUSD both on spot and futures trading.
In the coin selection section, you can see the entire list of coins for stablecoins.
In addition to the pluses, there are also minuses – stablecoins have centralized management, the emission of tokens and their provision is controlled by issuers.
The companies issuing Tether, Circle and Coinbase, Binance have the ability to track all movements of stablecoins and block them on the wallet.
There are more than enough blocking precedents. Dune Analytics even created a page with USDT blocked addresses.
Basically, these blocks were associated with hacker attacks and theft of funds. We are not talking about a sudden freeze of stablecoins for ordinary users.
It is worth noting that BUSD is not a follower of this practice, and most importantly, there were no such cases.
Let’s talk about decentralized stablecoins UST and DAI
The main difference between (UST and DAI) stablecoins from others is their complete decentralization. They do not have a central control, and therefore it is simply impossible to block them.
In the current geopolitical situation, many users have turned their attention to the acquisition of these assets, due to the fear of freezing centralized stablecoins.
Working with Dai is provided by smart contracts based on the MakerDAO protocol. It is run by a decentralized community of MKR token holders.
Dai has collateral that is locked in verified, public Ethereum smart contracts.
The operation of the platform is complicated, but if you put it in simple terms, Dai is created when a loan is taken on the MakerDAO platform.
They are also destroyed when the loan is repaid.
A loan is issued secured by coins, both highly liquid and low volatile. The total value of funds locked (TVL) on the smart contracts of the MakerDAO DeFi project is $15 billion.
You can track on the website.
Work with UST is supported by the Terra blockchain platform, in turn, its assets are secured by the native Terra LUNA cryptocurrency.
To issue UST stablecoins, LUNA coins are burned for the corresponding value. And for withdrawal, stablecoins are exchanged for another asset through LUNA. The cost is fixed and supported by arbitrageurs.
The total value of funds locked (TVL) on the Terra platform is $25.1 billion and is constantly growing.
You can track it on the website.
Conclusion:
The best protection for a trader is diversification. Since each tool has pros and cons, it is worth diversifying your portfolio using both centralized and decentralized stablecoins.
- Divide your stablecoin portfolio into multiple assets.
- Start part of the money to work on the Veles platform. Let the bots do their thing.
- Send some money to DAI and put it on Metamask or Trustwallet.
- Buy decentralized coins like BTC and ETH.
Thus, you can protect yourself from any trouble!
