The Evolution of Stablecoins: New Opportunities and Challenges

New stablecoin projects are multiplying and differentiating themselves by sharing collateral profits with holders and using liquid staking tokens as collateral. According to DeFiLlama, the number of stablecoin projects rose from 27 in April 2021 to 182 by July 2024, a 574% increase. Ondo Finance's USDY, a tokenized note backed by short-term U.S. Treasury bonds, pays a variable interest rate of around 5.3%, while Ethena Labs' USDe uses stETH as primary collateral with a delta-neutral strategy and had a market capitalization of $2.6 billion as of September 19, 2024.