​​🧠 3/3

2️⃣ No-RWA (decentralized) stablecoins

This is the other side of the spectrum. My fellow truck-gun-ranch-BBQ-decentralization-VPN-alienhating mongols. Just kidding. Well, here you have varying degrees of fairy tales being spoonfed to you. Choose what you like:

- decentralized collaterals, no governance, centralized third-party oracle
- decentralized collaterals, active governance, anon team members
- decentralized collaterals, centralized governance, ddoxed team members
- centralized collaterals, active decentralized governance, decentralized oracles

Again, these are not bad! It’s just about what you are afraid of most, because there is no universal medicine. Liquity is like the pinnacle of our achievements so far if RAI-HAI weren’t so design-wise unusable. Then you have a bunch of their forks & spoons which came out recently like Lybra & later Prisma (scroll 2 posts above for a cool LSDfi post). And a bunch of other ice cream flavours which are all based on milk anyway.

3️⃣ Algo jungle yield stables

This goes even deeper. These are not even stables per se, they are stable-pegged assets made for leveraging, looping collaterals, and doing crazy shit. They are not intended or ever been used for payments. They are mathematical fun coins basically. There are a ton of cool things here, but they are basically destined to stay relatively small (while still maybe in $1B size) as they can’t tap into real adoption narratives.

- crvUSD: very cool, very new, but centralized liquidity collaterals (or not? see Michael's reply)
- FRAX: very innovative, very agile, but the question is the purpose now (apart from farming?)
- MIM: was very cool and very risky, now more safe, but same questions apply

Plus all the other stables that have not been mentioned above, ikyk. Again, they are not bad, but they are neither super safe nor are they super regulated. They might like their niche and can spin up other products later, as they have. I bet teams ask themselves the same, And it’s fine! Keep pushing for what you believe in, keep iterating, I am just talking from the user perspective as a stable enthusiast myself. Love you ❤️

Don’t forget, this is all subjective stuff! Feel free to discuss and debate in @lobsters_chat & kingdom.

That’s all for today. Stay sane, stay safu, and don’t sell your stables at $0.97. 🫡

Some cool sources on stablecoins:

- https://defillama.com/stablecoins
- https://stablecoins.wtf/
- https://dune.com/steakhouse/stablecoins
- https://dune.com/KARTOD/stablecoins-overview