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What are the upcoming TGE yield-based stablecoin protocols?
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CAP is a new stablecoin protocol built on MegaETH that allows users to earn real yield without relying on common DeFi tricks, such as through token issuance. Instead, it leverages external sources of yield, such as market making, MEV, and arbitrage, which are all methods that big players have been profiting from the market for years. The key to its appeal is that now everyday users can enjoy the same money-making strategies without inside connections or certain financial knowledge. cUSD is backed by USDC/USDT at a ratio of 1:1, which means it is fully collateralized and always redeemable.
Resolv is a stablecoin protocol that issues USR, which is pegged to the US dollar. Unlike traditional stablecoins that are backed by fiat reserves or treasuries, Resolv keeps its system on-chain while hedging against ETH price fluctuations through perpetual futures. USR is 100% backed by ETH and over-collateralized through an insurance layer called RLP.
Noble issues USDN, a stablecoin that earns interest simply by holding it. USDN is fully backed by short-term U.S. Treasury bills, which allows users to earn real-world returns without staking or locking anything, while keeping their funds safe.
Level is a decentralized stablecoin protocol that issues lvlUSD, which is fully backed by USDC and USDT. Unlike traditional stablecoins, lvlUSD generates DeFi native yield by providing collateral to lending protocols such as Aave and Morpho. This yield is returned to users, making lvlUSD a yield stablecoin that is seamlessly integrated into DeFi.
Stablecoins are still a long way from being a safe place to store value. The next generation of stablecoins aims to change the rules of the game by providing real yields on so-called productive assets. As DeFi matures, yield-generating stablecoins will become a core financial primitive, bridging the gap between crypto and traditional finance. What remains to be seen, though, is what other types of assets can be used to take this yield-generating stablecoin to the next level? Perhaps we just need to scale up without having to introduce new types of assets, only time will tell.
