Money Printer

Rekt by FEI, and Launch of LUSD - Stablecoin Report - April 11th 2021

The top 5 stablecoins are worth $65.39 billion dollars in market capitalization. They have added $3.87 billion in market capitalization in the last week. The total crypto market cap exceeded $2 trillion dollars this week. It took cryptocurrencies since the founding of Bitcoin around 10 years to reach a 1 trillion market cap. Now, after less than 100 days, cryptocurrencies have added another trillion in value.

This week saw the launch of not one, but two stablecoins on Ethereum. The flashier launch was of FEI protocol, which dumped its over $1 Billion supply into a Uniswap LP. This makes it the largest LP on Uniswap by quite a bit, maybe even $1 billion larger than the next biggest LP. It has never traded on peg. Fei's algorithm mechanism takes coins which are sold too cheap as penalty payments, penalizing lowball sales.

Meanwhile, the much less flashy Liquity USD (LUSD) also launched and quickly amassed over 200M in value. LUSD acts as a much less costly DAI, allowing users to lock ether, pay 0% interest, and have a collateral ratio as low as 110% (DAI costs between 3-5% and has a collateralization of around 150% usually). While we can't recommend aping into any new stablecoins, LUSD definitely does seem far more promising than FEI. In general though, there's not much long term value to be gained trying out new stablecoins.

Tether was again the largest money printer, even beating out FEI. The slowest growth in the top 5 came from DAI. Aave protocol is in talks with MakerDAO, creators of DAI, in becoming a possible emitter of DAI. This would greatly increase the collateral available for DAI and generally bring borrow rates for DAI down significantly.

Our stablecoin leaderboard is below. To learn more about stablecoin earning opportunities, read our article on the subject. This is not financial advice, please do your own research before investing in projects.

BSC Gateway Stablecoin Leaderboard

SymbolNameMarket Cap1 Week ChangeCurrent Price1 Year Low1 Year HighRecommendation
SymbolNameMarket Cap1 Week ChangeCurrent Price1 Year Low1 Year HighRecommendation
USDTTether USD44.5 billion+1.9 B$0.9990.9811.01Use With Caution
USDCUSD Coin11.1 billion+130 M1.000.981.01Safe
BUSDBinance USD4.93 billion+1.09 B1.000.9071.15Safe
DAIMulti-Collateral DAI3.12 billion+67 M1.000.991.04Safe
USTTerra USD1.74 billion+80 M1.000.9281.09Use with Caution
FEIFEI Protocol$1.64 billion+1.64 B0.806994 0.7343290.977261Avoid
LUSDLiquity USD$269 million+269 M1.02 0.9850561.16Use with Caution
VAIVai172 million+12M0.860.57921.20Avoid
BDObDollar37 million-13 M0.660.48006914.70Avoid
DittoDitto5.2 million+0.8 M0.9690.4392.88Avoid
QUSDQian USD743 thousand?0.97620.071.52Avoid