Current stablecoin pattern dissolves: competition exists, mutual cooperation is the best solution

原文标题：《 当前稳定币格局拆解：竞争存在，相互合作才是最好的解决方式 》

Original article by Ignas

Deep Tide TechFlow

When the UST crashed, the DeFi stablecoins were hammered, but DAI, FRAX and LUSD remained strong. Now, GHO and crvUSD are preparing to join the field and bring new innovations. And, with regulators cracking down on BUSDs, DeFi stablecoins may see a new bull market.

Question: Which DeFi Token would you hold to escape the volatility of the cryptocurrency without expecting to earn any interest on it?

In my opinion, this should be DAI.

This is because $DAI carries a monetary premium - the extra value over and above its price, thanks to:

- Spot liquidity

- The time-tested dollar peg

- Supports many DeFi protocols

- Usage is increasing in the real world

The same currency premium applies to centralized stablecoins. The premium depends on adoption, regulatory compliance, liquidity and trust.

Now, the SEC charges against BUSD are breaking up the currency premium of BUSD in favor of USDC, USDT, but mostly against the DeFi stablecoin.

You can think of this premium as the premium of the dollar over other currencies. It comes from reserve currency status, political stability, military and economic power, and financial markets. There are various factors involved and it takes time to earn this currency premium.

The currency premium of $UST is low - it is not being used as a "reservoir" to shelter from cryptocurrency volatility, but as a risky asset that can earn a 20% APY on Anchor.

That being said, DeFi stablecoins like FRAX and LUSD are building their currency premiums and catching up with DAI.

They seem to substitute each other, but each has its own purpose. With the regulator's permission, DAI has shifted its focus to generating revenue from RWAs.

His goal, however, was an unbiased world currency backed by decentralized, physically resilient collateral.

Liquity's (LUSD) mission is the same: to be "the most decentralized stablecoin that can resist all kinds of censorship." However, it achieves this with minimal governance, is not subject to RWA, uses only ETH as collateral, and does not relinquish the dollar peg (unlike DAI).

Because of its design and immutable smart contracts, LUSD will not (probably) surpass DAI in market cap. However, for those concerned about centralization and censorship risks, it could serve as a niche stablecoin while still maintaining the dollar peg.

Frax's strategy is different.

In an interview with Blockworks, S.Kazemian said a dollar-pegged stablecoin would not evade regulation through "fake or real decentralization" in terms of scale. They have even applied for the main Fed account to get as close to the central bank as possible.

The Fed master account will allow dollars to be held and traded directly with the Fed, making FRAX the closest thing to a risk-free dollar.

This would allow FRAX to forgo USDC collateral and expand to hundreds of billions of dollars in market value.

But FRAX is not there yet, it does not have the currency premium of DAI. For now, FRAX is being used to milk its cleverly designed flywheel ecosystem.

DAI, by contrast, keeps most of its supplies in purses to protect against market volatility and preserve value.

What sets Frax apart is its ability to maximize revenue and efficiency.

Frax has built the entire "DeFi Triad" ecosystem around FRAX:

Fraxswap

Fraxlend

The Fraxferry

frxETH

Each feature is designed to enhance FRAX's effectiveness.

Synthetix's use of sUSD is also pragmatic, tied to its own DeFi ecosystem.

Kwenta - Trading platform

Lyra - Option

Polynomial - Structural vault

Thales - binary options

sUSD adoption depends on the growth of its DeFi products, but its currency premium is low.

Interestingly, Maker hopes to build its own DeFi ecosystem just like Frax did. Maker is building a loan protocol and a synthetic LSD -- EtherDAI -- to create more utility and demand for DAI.

My initial thought was that Spark Protocol was a clear competitor to Maker and a counterattack to $GHO. But that doesn't mean Maker and Aave shouldn't work together in the future. In fact, I think cooperation is the best outcome for both. Let me explain.

Everything Frax has built is focused on enhancing the capabilities of FRAX Stablecoin. Likewise, Maker's new agreement will help boost DAI's utility. For Maker, DAI as an unbiased world currency is the ultimate driving force, and new agreements are being constructed to achieve this goal.

However, Aave's mission is different: it seeks to become the number one money market protocol, and $GHO is a vehicle to achieve that goal.

In short: DAI is the mission and Spark is the tool. For Aave, the money market is the mission and $GHO is the tool.

Venus' stablecoin $VAI is a good example. It is a successful loan agreement on the BNB chain, with TVL of $855 million.

At its peak market cap of $250m, $VAI was bigger than FRAX - it is now trading at a discount to the peg ($0.94) and trading at just 60K in 24 hours.

VAI is not a priority for Venus: the loan agreement is its own mission. Still, $VAI helped Venus grow to where it is today.

In any case, if the founders really had it in mind, then all stablecoins could coexist and even support each other's development. Providing DAI on Aave means that the protocol can mint more $GHO, and that $GHO can also be supported on Spark.

The same logic applies to crvUSD for Curve. Curve is the backbone of spot liquidity in DeFi, and crvUSD will help make the agreement more capital efficient. Thus, crvUSD is not a threat to FRAX or DAI - it can actually increase spot liquidity for all DeFi stablecoins.

So I'm bullish on them because they offer unique differentiation. They recognize that regulation is important, but there are different ways to deal with it:

DAI and LUSD seek to make themselves resistant to scrutiny, while Frax is getting as close as possible to the Fed.

While GHO and crvUSD may seem more competitive, their focus is on improving the underlying protocol. They can all work together in their own unique ways and reinforce each other.

Moreover, with regulators looking at us, cooperation is needed now more than ever.

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