Original Article Title: "Rise of New Factions in the Stablecoin World: How Six Projects Are Impacting the Market Landscape"

Original Article Author: Ethan, Odaily Planet Daily

Stablecoins, as a cornerstone of the cryptocurrency market, not only serve as a medium of exchange with price stability but also play a key role in DeFi, cross-border payments, asset management, and other fields. Between 2024 and 2025, the cryptocurrency market saw the emergence of a group of new stablecoin projects that quickly became the focus of the market due to their differentiated technical architectures and precise business positioning.

This article from Odaily Planet Daily focuses on six highly anticipated new stablecoin projects: Ripple's RLUSD, WLFI's USD 1, Usual's USD 0, Ethena's USDe, SKY's USDS, and PayPal's PYUSD. It conducts an in-depth analysis from dimensions such as launch background, core technology, market performance, revenue model, user participation opportunities, etc., comprehensively decoding their market positioning and development potential, providing readers with a clear industry change observation guide.

1. Ripple RLUSD

In April 2024, Ripple officially announced the launch of the stablecoin RLUSD pegged to the US dollar at a 1:1 ratio, marking a key step in the stablecoin race. Its reserve assets consist of US dollar deposits, US Treasury short-term bonds, and cash equivalents, providing a solid safeguard for price stability. In August of the same year, RLUSD first began testing on the XRP Ledger and the Ethereum mainnet, then expanded its support to Chainlink's The Root Network, establishing a tri-chain parallel structure to support cross-chain and bridging operations, greatly enhancing asset circulation flexibility.

On December 17, 2024, RLUSD received authoritative approval from the New York Department of Financial Services (NYDFS) and officially landed on global trading platforms such as Uphold, Bitso, and MoonPay, marking a major breakthrough in its compliance process. Moving into 2025, RLUSD's application scenarios continued to expand: in January, it was integrated into Ripple Payments, empowering real-time cross-border payment business; in April, Aave V3 Ethereum market provided support, successfully entering the DeFi field, further expanding its user base and market influence.

Standard Chartered Bank predicts that the stablecoin market size will reach $20 trillion by 2028, and the launch of RLUSD is Ripple's strategic layout in this blue ocean market. On one hand, RLUSD helps Ripple consolidate its competitiveness in the global cross-border payment market, meeting the liquidity needs of the XRP ecosystem; on the other hand, RLUSD aligns closely with Ripple's core business, serving as an ideal tool for enterprise clients in cross-border payments by providing instant settlement services and reducing foreign exchange rate risks.

Ripple has a significant advantage in the promotion of RLUSD, with its global payment network covering over 90 markets, processing over 90% of the daily forex trading volume; regulatory qualifications such as NYDFS approval, and collaboration experience with global exchanges like Bitstamp, Kraken, establishing a high market entry barrier. In terms of market positioning, RLUSD focuses on B2B payment scenarios, serving financial institutions and corporate clients, while leveraging DeFi platforms like Aave to extend its reach to retail investors and the DeFi market, aiming to capture more share in the rapidly growing stablecoin market.

Classification

· Mechanism: Non-algorithmic, backed by traditional financial asset reserves, emphasizes compliance and transparency, with monthly reserve reports published by third-party audit firms (e.g., BPM).

· Profitability: RLUSD itself does not offer direct returns, but users can participate in lending through DeFi protocols (such as Aave) to earn yield.

Market Data and Performance

As of now, the total market capitalization and circulating supply of RLUSD are around 317 million tokens each (due to slight discrepancies in data across platforms), with a 24-hour trading volume of approximately $23 million, demonstrating active market liquidity. From on-chain data, RLUSD is most concentrated on the Ethereum chain, with a supply of around 250 million tokens held by 2,401 addresses, and the top 100 wallets holding 99.93% of the supply, showing highly concentrated distribution.

After RLUSD's launch on the Ethereum mainnet's Aave V3 market, supporting lending functionality with a supply cap of 50 million tokens and a borrowing cap of 5 million tokens, the market received a warm response. Within the first 4 days of launch, the deposit volume exceeded $76 million. Despite fluctuations in market conditions, the deposit volume currently stands at $67.13 million, maintaining a high level and continuing to provide stable liquidity support to the market.

User Participation Opportunities

Currently, RLUSD has not yet introduced direct liquidity mining or staking reward mechanisms. Users looking to earn returns can deposit RLUSD into the Aave V3 market on the Ethereum mainnet, participate in lending activities, with the annualized yield adjusting dynamically based on market conditions; additionally, users can also trade RLUSD on platforms such as Curve, Kraken, in pairs with other stablecoins (e.g., RLUSD/USDC), to engage in market trading and earn potential returns.

2. WLFI USD1

On March 25, 2025, World Liberty Financial (WLFI) officially launched the USD 1 stablecoin. The stablecoin claims to have received support from Donald Trump, adopts a 1:1 mechanism pegged to the US dollar, and is backed by a 100% reserve of US short-term treasuries, USD deposits, and other cash equivalents. USD 1 initially chose to launch on the Ethereum and Binance Smart Chain (BSC) and plans to expand to more blockchain networks in the future. In terms of asset security and transparency, its reserves are institutionally custodied by BitGo, regularly audited by third-party accounting firms, and introduces Chainlink's Proof of Reserves (PoR) mechanism to ensure public verifiability of asset status.

WLFI's core business focuses on digital asset financial services, aiming to build a seamless bridge for users to engage in cross-border transactions and DeFi. The launch of USD 1 is intended to break down the barriers between TradFi and DeFi. On one hand, leveraging Trump's influence to attract investors' attention to related projects, and on the other hand, enhancing its own political and commercial influence in the crypto market, attempting to establish a presence in the competitive stablecoin market through brand advantage and compliant operations.

The issuance of USD 1 and its association with the Trump family have created a unique branding effect, bringing high market attention. This advantage has not only attracted a large number of retail investors but also sparked interest among institutional clients, becoming a key driver for its market expansion.

Classification

· Type: Fiat-pegged.

· Mechanism: Non-algorithmic, relies on traditional financial assets, emphasizes institutional custody (such as BitGo).

Market Data and Performance

On April 12, 2025, WLFI announced a USD 1 airdrop proposal for early supporters, triggering a strong market response. Despite USD 1 not being officially listed yet, its 24-hour trading volume on both the Binance Smart Chain (BSC) and Ethereum platforms quickly rose to nearly $44 million. On April 16, leading crypto market maker DWF Labs announced a $25 million investment in WLFI and pledged to provide liquidity support for USD 1. This investment significantly boosted the market credibility of USD 1, especially on DEX PancakeSwap (BSC), where the activity of USD 1 trading pairs like BSC-USD notably increased.

As of now, the total market capitalization of USD 1 token has reached 127 million USD, with a circulating supply equal to the market size, also at 127 million tokens. On-chain data shows that on the BSC chain, the total supply of USD 1 is 113,479,585 tokens, with 1,812 holders, accounting for 88.97% of the on-chain token market value; whereas on the Ethereum chain, the total supply of USD 1 is only 14,491,580 tokens, held by only 322 people, indicating a significantly lower circulation scale and user participation on the Ethereum chain.

User Participation Opportunities

Users can engage in trading through DEXes (such as PancakeSwap) or await more DeFi protocol integrations. Additionally, users are advised to follow the official WLFI X account (@worldlibertyfi) to stay updated on the latest news, airdrop plans, listing schedules, and other important announcements related to USD 1, ensuring timely access to project developments.

3. Usual USD0

The USD0 launched by Usual Labs is positioned as an income-bearing stablecoin, pegged 1:1 to the US Dollar. The core feature of this project is the use of RWA as collateral, particularly short-term US Treasury bonds or other low-risk assets, to ensure the stability of USD0. Through this approach, USD 0 can circulate within the DeFi ecosystem while providing users with a low-risk, predictable stablecoin option.

Currently, USD 0 is primarily issued and circulated on multiple blockchain platforms such as Ethereum, BNB Chain, Base, and others. The project offers a simple collateral mechanism where users can mint USD 0 by collateralizing USDC or other stable assets, thereby providing liquidity to the DeFi market. Additionally, Usual has introduced USD 0++, a special bond-type stablecoin (based on USD 0's LST, similar to Lido's stETH). USD 0++ offers approximately 4% annualized return by locking up 4-year US Treasury bond assets and supports liquidity mining and lending on platforms like Uniswap V3, Curve Finance, and others.

Usual Labs launched USD0 to address the market's need for high-quality and diverse stablecoins, especially in the DeFi sector. Through a deep integration of RWA with DeFi protocols, USD0 aims to increase the Total Value Locked (TVL) and enhance user participation. In the DeFi ecosystem, the high liquidity and price stability of stablecoins are crucial. However, traditional fiat-pegged stablecoins like USDT and USDC are mostly managed by centralized institutions, facing regulatory uncertainties and trust risks. In contrast, USD0, with its decentralized nature, provides a more attractive option for DeFi users.

In December 2024, Usual Labs partnered with Ethana and announced the integration of USDtb and sUSDe into their future core business strategy. Both parties plan to accept USDtb as collateral and gradually transition a portion of the USD 0-backed assets to USDtb, with Usual Labs also planning to become a major holder of USDtb.

Classification

· Type: RWA-backed, reserves include short-term government bonds, and a portion of Ethana's USDtb.

· Mechanism: Non-algorithmic, relying on RWA and USDtb assets.

Market Data and Performance

On January 9, 2025, Usual Labs suddenly announced a significant adjustment to the redemption mechanism of USD0++, lowering the original 1:1 fixed exchange rate to as low as 0.87 USD 0. This move quickly triggered market turmoil, causing the market price of USD0++ to plummet to 0.89 US dollars, significantly deviating from the peg to the US dollar. As many DeFi protocols had previously considered USD0 and USD0++ as equivalent assets, this adjustment directly caused widespread market confusion, leading to escalating user dissatisfaction.

Going back to early 2025, the market capitalization of USD0 had surged to a historical peak of around 1.9 billion US dollars. However, in the two months following the adjustment to the redemption mechanism, its market capitalization evaporated by approximately 1.2 billion US dollars, sharply dropping to around 662 million US dollars, severely denting market confidence in the protocol.

In response to the questioning, Usual Labs stated that this adjustment was part of a predetermined strategy aimed at repositioning USD0++ as a zero-coupon bond-like product, distinguishing it from traditional stablecoins. However, due to a lack of advance notice and adequate transparent communication, many users were unable to prepare in advance, leading to a crisis of trust and significantly reducing liquidity in the USD0 ecosystem.

Related Articles:

· "USD 0++ Continues to 'Depeg,' Should You Hold or Run?"

· "In-Depth Analysis of Usual: The 'Tricks' Behind USD 0++'s Depeg and Circular Loan Liquidations"

Also recommended is an anchor-off memoir of the stablecoin sUSD titled "Synthetix Introduces Remediation Measures Again, Can sUSD Reanchor?".

User Engagement Opportunities

Users can participate by staking USD0 to receive USD0++, earning a 50% annual percentage yield (Risk Warning: USUAL token rewards are tied to TVL). Alternatively, they can provide liquidity on protocols such as Uniswap to earn rewards.

4. Ethena USDe

USDe, launched by Ethena, is an innovative stablecoin. Its collateral assets include not only ETH, BTC, and other cryptocurrencies but also Real World Assets (RWA) like BUIDL, maintaining its value stability through a diversified asset portfolio. Unlike stablecoins pegged to traditional fiat currencies, USDe is collateralized by crypto assets. Leveraging smart contracts and algorithmic mechanisms, it can automatically adjust collateral ratios based on market fluctuations to ensure price stability. This unique design gives it greater flexibility and transparency in the DeFi ecosystem. USDe is issued and managed by Ethena Labs, a team with extensive experience in blockchain and DeFi, and mainly circulates on major blockchains such as Ethereum. Users can mint USDe by staking assets such as ETH, BTC, and USDC.

Ethena's launch of USDe aims to create a native trading and lending solution for the DeFi space, building a high-yield, decentralized stablecoin ecosystem and breaking away from traditional stablecoins' reliance on the banking system. In this process, Ethena has partnered with financial giant BlackRock to introduce RWA support, providing USDe with a solid institutional asset backing. Additionally, through deep integrations with protocols like Aave and Morpho, USDe's liquidity has been significantly enhanced. By employing a LayerZero cross-chain strategy, the ecosystem coverage has been further expanded. USDe targets DeFi native users and institutional investors, focusing on core scenarios such as lending, trading, and yield generation.

Categories

· Type: Synthetic USD-pegged stablecoin, combining crypto assets (such as ETH) and RWA (such as BUIDL) anchoring.

· Mechanism: A combination of algorithm and yield, generating income through futures arbitrage and staking to maintain USD peg.

Market Data and Performance

USDe employs a delta-neutral strategy to maintain price stability. Specifically, this strategy uses ETH as collateral while simultaneously opening equivalent short positions perpetual futures contracts on derivative trading platforms. With this strategy, USDe can offer users an annual percentage yield (APY) of over 25%, attracting the attention and participation of many DeFi users due to its generous returns. This has made USDe the fastest-growing asset on Aave, with borrowing and staking demands far surpassing traditional stablecoins such as USDT and USDC. Furthermore, within the Ethena protocol ecosystem, USDe generated fees of up to $200 million in 2024, with a portion of these fees being distributed to ENA token holders. This initiative has not only increased user stickiness to the protocol but has also driven a significant surge in the ENA token price.

The market situation is ever-changing, and the total market value of USDe has also been somewhat affected, slipping from its peak of $5.9 billion in March of this year. However, even so, the current total market value of USDe still stands at $4.7 billion. With its high-yield characteristics and the endorsement of financial giant BlackRock, USDe has successfully attracted widespread market attention, surpassing SKY's USDS launched in the stablecoin market and claiming the third position in the stablecoin market.

User Participation Opportunities

Users can stake USDe on the Ethena platform to receive approximately 27% annual percentage yield (APY) in sUSDe, achieving asset appreciation; or choose to leverage arbitrage opportunities in DeFi protocols such as Aave, Morpho, etc., to exploit the interest rate spread and earn returns. It is recommended to closely monitor market dynamics, assess risks carefully, and then proceed with operations.

5. SKY USDS (Formerly Maker DAI Upgrade)

The USDS launched by Sky is derived from the original MakerDAO protocol, adopting a 1:1 peg to the dollar mechanism, with ETH and other cryptocurrencies as the main collateral, positioning itself as a decentralized stablecoin with a soft peg to the dollar. As the successor to MakerDAO, Sky has comprehensively restructured and upgraded the original system, launching USDS and SKY as two native tokens, respectively serving as the stablecoin and ecosystem governance token.

Sky introduces USDS to consolidate its leading position in the DeFi field, create a fully decentralized stablecoin solution, and continue the successful genes of MakerDAO. USDS is deeply integrated into Sky's core business, providing support for decentralized lending and payment scenarios, and serving as an important part of the governance system, becoming a trusted value store and medium of exchange for DeFi users. Sky has significant resource advantages: on the one hand, it inherits MakerDAO's long-term decentralized governance experience, and on the other hand, it integrates extensively with mainstream DeFi protocols such as Aave, Compound, etc. In addition, through the governance token SKY, Sky has established a community-driven model to incentivize users to actively participate in ecosystem development.

In terms of yield mechanism, USDS provides users with a 6.25% annual percentage yield through the Sky Protocol. Although this yield is lower than that of USDe, its more stable yield performance continues to attract a user base seeking stable returns.

Classification

· Type: Cryptocurrency Asset-Backed, reserves include Ethereum, USDC, and other assets.

· Mechanism: Combination of algorithmic and collateralized, maintained through over-collateralization and dynamic stability fees pegged to the asset.

Market Data and Performance

· Total Value Locked (TVL): According to Defillama, the current TVL of the token is approximately $42.2 billion.

· Supported Blockchains: Primarily Ethereum, with integrations on Base, Solana, and Arbitrum.

· Circulating Supply: USDS has a relatively low circulating supply, with a 24-hour trading volume of $2.78 million, showing a significant contrast to its TVL.

User Participation Opportunities

Users can deposit USDS into the Sky Protocol to earn approximately a 6.25% Annual Percentage Yield (APY) and additional SKY token rewards. Users can also choose to participate in lending operations on platforms like Aave to earn profits. It is important to note that since USDS is primarily collateralized by cryptocurrency assets, market price fluctuations may affect the collateral's value and, consequently, the stability of returns. Users are advised to thoroughly assess risks before engaging in such operations.

6. PayPal PYUSD

PayPal USD (PYUSD) is a US dollar stablecoin launched by PayPal in August 2023, pegged 1:1 to the US dollar and fully backed by USD deposits, short-term US Treasury bonds, and cash equivalents. This stablecoin is issued by Paxos Trust Company and is issued on the Ethereum and Solana blockchains. Users can conveniently buy, sell, hold, and transfer PYUSD through the PayPal application, catering to use cases such as peer-to-peer payments, online shopping settlements, and cryptocurrency conversions.

In April 2025, PayPal introduced the PYUSD Savings Plan for US users, offering a 3.7% Annual Percentage Yield (APY). By simply depositing PYUSD into their PayPal or Venmo wallets, users can receive interest rewards in PYUSD, which can be flexibly used for everyday payments, fiat currency exchanges, or other cryptocurrencies. This move further promotes the mainstream adoption of PYUSD in the payment ecosystem.

PayPal's launch of PYUSD aims to expand its global payment ecosystem into the cryptocurrency realm, optimizing users' payment and transfer experiences in the digital asset space through the stablecoin's characteristics. As an extension of PayPal's core online payment and cross-border money transfer business, PYUSD is committed to deeply integrating cryptocurrency into the existing payment network to enhance user engagement and platform transaction volume. Leveraging its base of over 400 million global users, mature payment infrastructure, and close collaboration with Paxos, PayPal has established a solid foundation for PYUSD's development while ensuring regulatory compliance and asset security. Its target markets include retail payment users and Web2 enterprises, attracting traditional finance sector users with low-risk returns while gradually penetrating the DeFi space to reach the native crypto user base.

Classification

· Type: Fiat Pegged, 1:1 pegged to the US Dollar, reserves held in short-term government bonds and USD deposits.

· Mechanism: Non-algorithmic, relies on Paxos' custody and regulation.

Market Data and Performance

Benefiting from PayPal's strong brand influence, PYUSD has successfully attracted many traditional financial users. However, compared to the average yield in the DeFi market, PYUSD's yield level is significantly lower, making its competitiveness in the DeFi field relatively weak. Looking back at its market performance, PYUSD reached a historical peak of about $1 billion in August 2024, but was later affected by cryptocurrency market fluctuations, gradually falling to around $880 million, currently ranking ninth in the overall stablecoin market.

From a technical architecture perspective, PYUSD is mainly deployed on the Ethereum and Berachain blockchains, followed by Solana, supporting cross-chain payment functionality to enhance asset liquidity. However, according to CoinMarketCap data, its 24-hour trading volume is only $13.93 million, with a trading volume to market cap ratio of 1.66%, reflecting that PYUSD's market circulation activity is still at a relatively low level.

User Participation Opportunities

Users have two profit paths: on one hand, they can participate in the deposit plan launched by PayPal, depositing PYUSD to earn an annualized interest rate of about 3.7% (APY), a very user-friendly yield model for traditional financial users; on the other hand, they can also engage in PYUSD trading within the Solana ecosystem's DeFi protocols (such as Saber), capturing market opportunities through buying, selling, and exchanging.

Conclusion

Overall, these six stablecoins differ in target market, yield model, collateral assets, and market performance. In the volatile cryptocurrency sea of stablecoins, some rely on traditional brand advantages, while others depend on innovative collateral models or yield strategies. However, the market is ever-changing, and no stablecoin can rest easy. In the future, stablecoins that can balance returns and risks, continuously optimize product mechanisms, enhance user experience, and strengthen market expansion are more likely to stand out in this competition, leading the development trend of the stablecoin market.

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