With the recent collapse of UST, I wanted to dive into stablecoins again. So, let’s do a quick run down of the best stablecoins. And before I do that I want to say that literally everything in crypto is a risk. Yes, even stablecoins. And, no, this is not an exhaustive list of stablecoins. Coingecko alone lists about 80 stablecoins and even that is not an exhaustive list.
Also, if you’re looking for the best ways to earn yield on your stablecoins, check out “Getting The Best Return on Stablecoins”
The Top 12 Most Popular Stablecoins in Q2, 2022
#12. UST
LOL.
My Rating 0
#11. USDN
This is the native stablecoin of the Waves network. It also operates with a crypto collateral redemption system similar to, but not exactly like, UST. Waves CEO breaks down key differences HERE. That being said it has significant issues trying to hold its peg. It is essentially a dangerous experiment on par with UST.
My Rating 1/10
#10. USDD
The newest offering from Justin Sun, of Tron. This is an algo stablecoin which can allow investors to earn up to 40% on a Tron based platform. The mechanics of this are scarily similar to UST. It feels like a dangerous experiment and I will be staying far away.
My Rating 1/10
#9. MIM
Why do you like to hurt yourself? Seriously. While on the one hand MIM is “safe” because it is over collateralized on a model similar to DAI. The real problem with MIM comes with the people behind it. The director of MIM and related products knowingly allowed one of the industry’s worst serial scammers of QuadrigaCX fame to be involved with one of his other close projects, Wonderland. Which makes you wonder what kind of poor judgment must be shown with MIM? How can anyone actually trust their money here? That being said it does still have use cases in defi, and in theory the collateral model should work.
My Rating 3/10
#8. FRAX
Frax is an algo stablecoin. Yeah, another one, but this is not UST. Frax maintains a partial collateralization of USDC… so why not just hold USDC? It is also looking to acquire layer one tokens like ETH and AVAX to back the coin. It also uses the Frax Shares, a secondary token, to help maintain the peg. It has an ok level of use cases in defi, and almost no centralized exchange adoption. While this is definitely less risky than UST, ask yourself, do you really want to gamble on another algo stablecoin? Is the risk worth it? In my opinion the only reason to hold this would be for a specific farming opportunity, but even then remember this is still an experimental coin.
My Rating 3/10
#7. GUSD
This is the Gemini dollar. Backed by the exchange of the same name. In theory it is a solid stablecoin, but almost no one uses it except Gemini and Blockfi (Gemini is an investor, surprise!). The defi use cases are nearly non-existent.
My Rating 5/10
#6. TUSD
The Trust USD, it has 1 to 1 backing and audits. Easy redemption for real dollars. Has limited adoption across defi and centralized exchanges. But overall a “decent” stablecoin option. Bonus points here is that Trust Company also offers stablecoins for Canadian Dollars, Australian Dollars, British Pounds, and Hong Kong Dollars.
My rating 7/10
#5. PAX
This is the Paxos Dollar. This is a pretty damn safe stablecoin. Fully regulated. Fully backed. Regularly audited. BUT, it has failed…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
