The supply of DAI rose from US$475 million to US$800 million, an increase of 71%.
Original title: “MYKEY Stablecoin Report 19: The market value of stablecoins reaches 19.86 billion U.S. dollars, the latest development of the decentralized stablecoin agreement”
Written by: Jiang Haibo
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- The circulating market value of major stablecoins reached 19.86 billion U.S. dollars, an increase of 1.334 billion U.S. dollars compared to last week.
- In the past week, 1 billion USDT was migrated from Tron to Ethereum. In addition, Tether also issued two additional issuances on Tron, totaling 500 million USDT; and 150 million USDT on Ethereum.
- From September 13th to 20th, the supply of DAI rose from US$475 million to US$800 million, an increase of 71%.
- Pickle has developed the Ethereum and stablecoin trading pair Uniswap LP Tokens aggregate mining function.
- On September 20, Curve’s one-day transaction volume set a record of US$519 million.
- After SWRV’s production cut, the total lock-up volume in Swerve was less than US$20 million.
Overview of stablecoin data
We first review the changes in the basic information of each stable currency in the past week (September 12, 2020-September 18, 2020, the same below).
Market circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
At present, the circulating market value of major stablecoins has reached 19.86 billion U.S. dollars, an increase of 1.334 billion U.S. dollars compared to last week.
Source: MYKEY, Coin Metrics
In the past week, the circulation of USDT has increased by 650 million. One billion USDT migrated from Tron to Ethereum. In addition, Tether also issued two additional issuances on Tron, totaling 500 million USDT; and 150 million USDT on Ethereum. The circulation of USDC has increased by 260 million, and the circulation of DAI has increased by 230 million. The circulation of PAX, BUSD, TUSD, and GUSD increased by 23.59 million, 93.97 million, 77.86 million, and 1.35 million respectively. The circulation of HUSD decreased by 1.39 million.
Number of holding addresses
Source: MYKEY, DeBank
Last week, the number of main stable currency holding addresses in the Ethereum network increased, increasing by 104,702 in total.
Source: MYKEY, DeBank
The number of USDT, USDC, TUSD, and DAI holding addresses increased by 90,882, 7,319, 570, and 5947, respectively, and the number of PAX holding addresses decreased by 16.
Number of active addresses
Source: MYKEY, Coin Metrics
Last week, the number of daily active addresses of major stablecoins dropped by an average of 2.43% from the previous week.
24 hours on-chain transactions
Source: MYKEY, Coin Metrics
Compared with the previous week, the number of daily transactions of major stablecoins dropped by an average of 1.18%.
24-hour on-chain transaction volume
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
The average daily transaction volume of major stablecoins dropped by an average of 0.71% from the previous week.
The latest development of the decentralized stablecoin protocol
The development of the blockchain industry is changing with each passing day, and so are the stablecoin projects. Last week, several decentralized stablecoin protocols have made great progress. This report will introduce these projects to everyone.
MakerDAO
MakerDAO is a representative of the decentralized autonomous blockchain project. The stablecoin DAI is the largest chain mortgage stablecoin. The governance token MKR can also well realize the unification of power, responsibility and benefit. With the increase in applications on Ethereum, the supply of DAI appears insufficient. In the past three months, the supply of DAI has increased by 545%, but the premium that was incurred when the demand for DAI is still unavoidable. Last week, MakerDAO passed a series of important votes, which can largely solve the problem of DAI’s premium.
- The USDC-A and PAX-A clearing lines have gone through two rounds of voting, respectively, from 110% and 120% to 101%
- USDC-A’s debt ceiling rose from 100 million U.S. dollars to 400 million U.S. dollars after two votes
- Activate TUSD as collateral, the debt limit is 50 million, and the liquidation line is 101%
- DAI global debt ceiling increased to 1.2 billion
After this series of expansionary votes, the supply of DAI rose to 800 million US dollars, an increase of 70% from a week ago. The market value of DAI also surpasses the market value of its governance token MKR. The price of DAI will be closer to the centrally issued USDC, PAX, and TUSD. When DAI has a premium of more than 1%, arbitrageurs can borrow DAI near the liquidation line and sell it on the secondary market, and can ignore liquidation risks.
This also brings the risk of centralization to DAI. Previously, because DAI was the only large-scale decentralized stablecoin issued on Ethereum, the application of DAI on the blockchain was generally better than centralized stablecoins. After that, the boundary between centralization and decentralization may become blurred.
Pickle
When the demand for a certain stable currency increases, a premium of more than 3% may occur in the short term. This situation has become frequent in recent liquidity mining, and users need to switch between different stable currencies. When the popularity of mining passes, the premium will disappear, and users may suffer a 3% loss of principal in the short term. As the profitability of liquid mining decreases, this loss will be unacceptable for many people.
Pickle Finance wants to use incentives to allow stable currencies such as DAI and sUSD to return to their anchored value (1 US dollar). At the beginning, PICKLE tokens will be distributed to the pledgers of Uniswap LP Tokens of ETH and DAI, USDC, USDT and sUSD. The LP corresponding to the lower price stablecoin will be rewarded with more PICKLE tokens, which will incentivize liquidity providers to sell stablecoins with higher prices and buy stablecoins with lower prices.
The Pickle Swap function will help users complete the conversion of LP Tokens with one click, including the conversion between platforms (now only supports the conversion from SushiSwap to Uniswap) and the conversion of LP Tokens between different stable coins and ETH in the platform.
pJar is a machine gun pool in Pickle. Users can pledge Uniswap LP Tokens. pJar will help users automatically mine and sell UNI to exchange for more underlying assets. pJar realizes the aggregation mining of Ethereum and stable currency LP Tokens on Uniswap. After users pledge Uniswap LP Tokens in pJar, they will get pToken, such as staking UNIV2 DAI/ETH LP will get pUNIDAI. Over time, 1 pUNIDAI will correspond to more UNIV2 DAI/ETH LP. Staking pUNIDAI will also receive additional PICKLE rewards.
Although Pickle Finance may not be able to achieve the goal of returning stablecoins to anchored value, this direction is worth the effort. Because of Uniswap’s token incentives, more and more stablecoins and ETH trading pairs will be used for mining on Uniswap, and pJar aggregate mining will be more useful.
Curve
Curve was originally a stable currency exchange protocol. With the development of cross-chain assets, there are now many Bitcoin anchor coins on the platform. When trading in Curve, the platform only charges a 0.04% handling fee. After the release of Curve’s platform currency CRV in August, the funds on Curve rose from less than US$300 million to more than US$1 billion. Currently, Curve has a total of $1.6 billion in assets. On September 20, one day’s transaction volume on the Curve platform set a record of US$519 million.
The price of CRV has dropped from US$30 at the initial issuance to US$1.4 now, and the annualized rate of return of the y pool has also fallen to 14.39%, but there are still more than US$600 million in stablecoins in the y pool. The decrease in mining yield did not reduce the amount of funds and transactions in Curve. It can be seen that Curve’s token incentives are effective, and users have not lost a lot after the revenue decline.
Swerve
Two weeks ago, Swerve forked from Curve. Its governance token SWRV has no team reservations and no pre-mining. Swerve has also optimized the gas fee in use. Because of the high early incentives, the total lock-up volume in Swerve reached up to 900 million US dollars. However, Swerve’s economic model has a fatal problem. It allocates 9 million SWRV in the first two weeks and 9 million SWRV in the following year. At the weekend of last week, SWRV completed its first production cut, and now the total lock-up volume in Swerve is less than US$20 million. A decrease in the amount of locked positions will increase transaction slippage, which will affect the experience of Swerve.
Source link: mp.weixin.qq.com
