The concept of asset-backed stablecoins has been gaining traction in the crypto world, with projects like Mountain Protocol, Maker, and Ethena offering innovative solutions to stabilize the value of their tokens. These projects are not only focused on pegging their tokens to real-world assets, but also on sharing the returns generated by those assets with token holders.
Mountain Protocol’s USDM, for instance, is backed by U.S. Treasuries but goes a step further by passing on the bond yields to token holders. This sets it apart from stablecoin giant Tether’s USDT, which does not share any returns with its users. Maker, on the other hand, shares protocol revenues from its real-world asset (RWA) backing and DeFi lending activity with savings DAI (sDAI) holders. This not only provides stability to the token but also gives users a share of the profits generated by the protocol.
Ethena takes a different approach with its “synthetic dollar” USDe, which leverages funding rates through a carry trade mechanism. By staking the token on the protocol, users can earn a share of the revenue generated by these trades. This model incentivizes users to lock up their tokens, contributing to the stability and growth of the ecosystem.
Overall, these projects are pushing the boundaries of stablecoin design by creating innovative mechanisms to not only peg their tokens to real-world assets but also share the returns generated by those assets with their users. This not only adds a layer of transparency and trust to the stablecoin space but also gives users the opportunity to earn passive income by participating in these protocols.
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