The King of Decentralized Stablecoins
Disclaimer: Your capital is at risk. This is not investment advice.
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This issue covers Stablecoins, MakerDAO (MKR), dYdX (DYDX), Illuvium (ILV), and Optimism (OP).
While Bitcoin may not benefit from higher interest rates, stablecoins do. They came about because the banks cut off the crypto industry from their services, which forced crypto to innovate. The stablecoin, which is the private sector’s answer to the central bank digital currency (CBDC), was born.
From 2020 to 2022, assets grew to $120 billion, with most value accruing to Tether and Circle, which are backed by fiat money. That said Tether has been controversial as no one is quite sure how complete or credible its backing is. Still, whatever solvency problems they once had, they will be cushioned by higher rates.
