💵 Stablecoin Internals
Stablecoins are the backbone of DeFi — over $150B in circulation. They aim to hold a 1:1 peg to a fiat currency (usually USD), but their mechanisms vary wildly. From fully-backed USDC to the ill-fated algorithmic UST, understanding how a stablecoin maintains its peg reveals its risks. The history of DeFi is littered with broken pegs and billions lost.
📊 The Stablecoin Spectrum
USDC (Circle)
Fiat-backed, regulated, multi-chain — reserve composition, SVB depeg, Circle ecosystem, Arc L1 chain, and CCTP
USDT (Tether)
The $140B dominant stablecoin — market share, reserve controversy, regulatory history, and systemic risk
Ethena (USDe)
Delta-neutral yield-bearing stablecoin — funding rate capture, sUSDe staking, and risk vectors
Yield Comparison
Best stablecoin APYs across Aave, Compound, MakerDAO DSR, Ethena, Morpho, and more — filterable table with risk breakdown and earnings calculator
Stability Mechanisms
How different stablecoins maintain their peg — collateral-backed, algorithmic, and hybrid approaches
Depeg Dynamics
What causes stablecoins to lose their peg — confidence spirals, bank runs, and redemption pressure
Algorithmic Stablecoins
UST, FRAX, and the history of algorithmic stablecoin experiments — death spirals and lessons learned