Paradigm shift in stable coins

  1. Centralized (fiat backed) : USDT , USDC
  2. Mixed : DAI
  3. Decentralized — LUSD , SUSD
  4. Algorithmic : UST , AMPL
  1. The funding rate payment is pooled together when longs pay the shorts i.e in a bullish trend , and these pooled capital is used to pay for the funding payments when shorts have to pay the longs in a bearish trend .
  2. The activity on perpetual DEXes is very little compared to CEXes , so expansion of the coin is totally dependent on the OI(open interest) of the DEXes .

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store