Question 1

What are the different types of Stablecoins?

Accepted Answer

There are primarily three types of stablecoins: fiat-collateralized, crypto-collateralized, and non-collateralized. Fiat-collateralized stablecoins are backed by fiat currencies like the dollar or euro. Each stablecoin is equivalent to a specific amount of the fiat currency, which is held in reserve. Crypto-collateralized stablecoins are backed by other cryptocurrencies. Due to the volatility of cryptocurrencies, these stablecoins are often over-collateralized to absorb large price swings. Non-collateralized stablecoins are not backed by any reserve. Instead, they use a working mechanism, such as a smart contract, to maintain their value.

Question 2

What are the advantages of Stablecoins?

Accepted Answer

Stablecoins offer several advantages. Firstly, they provide stability in the highly volatile cryptocurrency market. This makes them a safe haven for investors during turbulent market conditions. Secondly, they enable the benefits of cryptocurrencies, such as fast and cheap transactions, while mitigating the risk of price fluctuations. Thirdly, they can be used as a medium of exchange, unit of account, and store of value, just like traditional money. Lastly, they can also facilitate cross-border transactions and remittances, providing a stable and efficient means of transferring value across borders.

Question 3

What are the disadvantages of Stablecoins?

Accepted Answer

Despite their advantages, stablecoins also have some disadvantages. One of the main concerns is the need for trust in the entity that holds the reserve assets. If this entity is not trustworthy, the stablecoin could lose its value. Additionally, fiat-collateralized stablecoins are subject to the same inflation and monetary policy issues as their underlying fiat currencies. Crypto-collateralized stablecoins, on the other hand, are exposed to the volatility of the underlying cryptocurrencies. Lastly, non-collateralized stablecoins rely on complex algorithms, which may not always work as expected, leading to instability.

#	Name	Price	1h %	24h %	7d %	Market Cap	Volume(24h)	Circulating Supply
3	Tether USDT	$0.9997	0.02%	0.02%	0.11%	$120.54B$120,543,433,652	$43,497,937,661 43,509,956,640 USDT	120,576,741,184 USDT
6	USDC USDC	$1.00	0.01%	0.01%	0.02%	$34.87B$34,873,522,264	$4,377,193,578 4,376,858,631 USDC	34,870,853,708 USDC
18	Dai DAI	$0.9999	0.01%	0.00%	0.02%	$5.36B$5,364,624,765	$45,067,956 45,074,323 DAI	5,365,382,703 DAI
32	First Digital USD FDUSD	$0.9991	0.03%	0.05%	0.03%	$2.48B$2,475,755,772	$3,096,787,618 3,099,599,925 FDUSD	2,478,004,097 FDUSD
81	USDD USDD	$0.9996	0.05%	0.06%	0.17%	$753.97M$753,965,091	$2,439,989 2,440,929 USDD	754,255,460 USDD
103	PayPal USD PYUSD	$0.9995	0.03%	0.05%	0.04%	$599.37M$599,366,220	$7,027,352 7,031,082 PYUSD	599,684,371 PYUSD
122	TrueUSD TUSD	$0.9958	0.00%	0.11%	0.05%	$493.53M$493,529,915	$40,372,090 40,541,556 TUSD	495,601,553 TUSD
201	Ethena USDe USDe	$1.00	0.01%	0.01%	0.13%	$2.76B$2,759,344,311	$22,824,861 22,804,729 USDE	2,756,910,515 USDe
206	Frax FRAX	$0.9965	0.00%	0.01%	0.02%	$647.13M$647,128,567	$2,376,634 2,385,099 FRAX	649,433,438 FRAX
211	Ondo US Dollar Yield USDY	$1.07	0.01%	0.00%	0.19%	$394.87M$394,873,151	$308,964 289,925 USDY	370,540,191 USDY
	USDBUSDB	$1.00
	USDJUSDJ	$1.11
	STASIS EUROEURS	$1.08
	TerraClassicUSDUSTC	$0.02
	Pax DollarUSDP	$1.00
	EURCEURC	$1.08
	Liquity USDLUSD	$1.00
	BUSDBUSD	$1.00
	Gemini DollarGUSD	$1.00
	USDX [Kava]USDX	$0.56
	Anchored Coins AEURAEUR	$1.08
	Venus BUSDvBUSD	$0.02
	Lift DollarUSDL	$1.00
	EuriteEURI	$1.08
	Tether EURtEURt	$1.08
	Celo DollarCUSD	$1.00
	Steem DollarsSBD	$2.58
	Reserve DollarRSV	$1.00
	XSGDXSGD	$0.75
	ZUSDZUSD	$1.00
	Rupiah TokenIDRT	$0.00
	EdelcoinEDLC	$0.85
	Verified USDUSDV	$1.00
	BIDRBIDR	$0.00
	GYENGYEN	$0.01
	sUSDSUSD	$1.00
	VNX Swiss FrancVCHF	$1.15
	HUSDHUSD	$0.04
	Venus DAIvDAI	$0.02
	Fei USDFEI	$0.97
	Origin DollarOUSD	$1.00
	MNEEMNEE	$1.00
	Celo EuroCEUR	$1.08
	VaiVAI	$1.00
	Prisma mkUSDMKUSD	$0.99
	DjedDJED	$0.99
	VNX EuroVEUR	$1.08
	Sperax USDUSDs	$1.01
	Empty Set DollarESD	$0.00
	IDRXIDRX	$0.00
	Basis CashBAC	$0.00
	Overnight.fi USD+ (Base)USD+	$1.00
	Savings DaiSDAI	$1.12
	AUSDAUSD	$1.00
	Bucket Protocol BUCK StablecoinBUCK	$1.00
	DOLADOLA	$0.99
	USDP StablecoinUSDP	$1.00
	Brazilian Digital TokenBRZ	$0.17
	Overnight.fi USD+ (Arbitrum)USD+	$1.00
	GHOGHO	$1.00
	Worldwide USDWUSD	$1.00
	Gyroscope GYDGYD	$1.00
	Fathom DollarFXD	$1.00
	lisUSDlisUSD	$0.99
	ZedxionUSDZ	$1.00
	xDAIxDAI	$1.01
	XUSDXUSD	$1.00
	Magic Internet MoneyMIM	$0.99
	CriptodólarUXD	$1.00
	USDHUSDH	$1.00
	Decentralized USD (DefiChain)DUSD	$0.02
	XIDRXIDR	$0.00
	Angle ProtocolEURA	$1.08
	MAIMIMATIC	$0.63
	JPY CoinJPYC	$0.01
	BounceBit USDBBUSD	$0.99
	wanUSDTWANUSDT	$0.99
	Moola Celo USDmCUSD	$1.00
	dForce USDUSX	$1.00
	Amnis Aptos CoinAMAPT	$8.09
	Inter Stable TokenIST	$1.00
	StablR EuroEURR	$1.09
	BiLiraTRYB	$0.03
	Overnight.fi USD+ (Optimism)USD+	$1.00
	Moola Celo EURmCEUR	$1.08
	Overnight DAI+DAI+	$1.00
	ZARP StablecoinZARP	$0.05
	Tether MXNtMXNt	$0.05
	CryptoFrancXCHF	$1.16
	Meter StableMTR	$0.52
	One CashONC	$0.06
	YUSD StablecoinYUSD	$0.99
	JPY Coin v1JPYC	$0.01
	USNUSN	$0.98
	xDollar StablecoinXUSD	$1.05
	Mad USDMUSD	$0.05
	ParallelPAR	$0.85
	TORTOR	$0.01
	USD BancorUSDB	$0.12
	Fantom USDFUSD	$0.43

Top Stablecoin Tokens by Market Capitalization