Stablecoin issuers

A space to discuss the ‘Stablecoin issuers’ market sector available on Token Terminal.

What are decentralized stablecoin issuers?

Decentralized stablecoin issuers are smart contract-based credit facilities that allow users to borrow stablecoins (often pegged to the dollar or euro) against crypto or real-world collateral assets.

What problems do stablecoin issuers aim to solve?

In order for the onchain economy to grow, users need access to stable cryptoassets. Many use cases are currently out of reach for crypto, since cryptocurrencies like bitcoin and ether are too volatile for users who wish to engage in trade through onchain payments.

How do stablecoin issuers solve those problems?

Stablecoin issuers bring down the cost to access tokenized dollars to one function call. Once a user has deposited (cryptoassets as) collateral into a stablecoin protocol, they’re able to borrow stablecoins minted by the protocol. Compared to lending protocols, where other users are the source of funds for borrowers, here the stablecoin issuer is the counterparty.

Why is now the right time to build and invest in stablecoin issuers?

The stablecoin issuer market is currently dominated by centralized stablecoins, such as USDT and USDC. Decentralized stablecoin issuers are uniquely positioned to issue stablecoins where all the operations that are tied to the issuance and management of the stablecoins are open-source and transparent.

What is the business model of stablecoin issuers?

The primary business model for stablecoin issuers is to generate revenue by charging stablecoin borrowers interest on their loans. That is, the stablecoin issuer captures the interest paid by borrowers.

Where can I view the current and historical (financial) performance of stablecoin issuers?

Stablecoin issuers dashboard: Stablecoin issuers | Markets | Token Terminal

Methodology for stablecoin issuer-specific metrics

Total value locked: collateral deposited into the stablecoin issuers vaults.
Outstanding supply: outstanding stablecoin loans issued by the protocol.
Fees: total interest paid by borrowers.
Supply-side fees: N/A.
Revenue: share of interest that goes to the protocol (and its tokenholders).
Token incentives: value of governance tokens distributed to depositors and borrowers.
Daily active users: daily distinct addresses depositing, borrowing, repaying, and withdrawing assets.

Example project documentation

Relevant links