šµ Overview Of Major Stablecoins In The Cardano Ecosystem šµ
Note: I am curious about the current status of integrating Circle's USDC stablecoin natively on the Cardano blockchain. In 2021, the Cardano Foundation declined a $3 million deal to bring USDC to the network, a decision that has been a topic of discussion within the community. Recently, Charles Hoskinson, founder of Cardano, has indicated potential collaborations with other stablecoin providers, such as Ripple's RLUSD, to enhance Cardano's ecosystem. ~The Dinarian
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We have several types of stablecoins: USD-backed USDM, overcollateralized DJED and MyUSD, synthetic iUSD, and USDC and USDT bridged via WanChain Bridge.
The total supply of all stablecoins was approximately $22.7 million in August 2024; currently, it is almost $24 million.
The number of holders has more than doubled from 2,283 to 5,530.
Despite this growth, we can't be satisfied with these numbers. The majority of blockchain transactions and user activity are related to stablecoins. For everyday users, DeFi will largely revolve around stablecoins for the foreseeable future.
Cardano is experiencing a lack of user activity, likely due to the absence of established stablecoins like USDT and USDC, which are not natively minted on Cardano.
Users tend to trust established USD-backed stablecoins the most.
USDM is one of the most successful stablecoins on Cardano, likely for this reason.
Cardano can improve its market position with more USD-backed stablecoins. The question is which ones to support the most.
There will be a competitive struggle between stablecoins. In my view, those available on multiple major chains will have the best chance of success due to their wider usage.
This is why we should aim to have USDC and USDT on Cardano.
On the other hand, we should support projects from the Cardano ecosystem, including USDM. USDM (Moneta) needs to expand to other chains, which may require financial support from the treasury.
Ripple recently launched a new stablecoin, RLUSD, which has the potential to compete with USDT and USDC.
We should strive to have RLUSD natively minted on Cardano as soon as possible.
DReps may face a difficult decision on which stablecoins to support.
It's easy to suggest supporting all options, but the question remains how much USD it would require.
From my perspective, stablecoin companies should strive to make their products as accessible as possible. I don't understand why they allegedly demand exorbitant amounts for deploying USDC and USDT on Cardano.
If the obstacle isn't just financial but also technical, we already have a solution. A new CIP will enable the minting of tokens similar to ERC-20. Regulated companies will be able to implement the necessary functionality. While we may not like it, we can continue to debate it.
I believe we should first support USDM and get RLUSD on Cardano ASAP. These could be the most cost-effective options.
RLUSD is a newcomer with ambitions to establish itself quickly. Charles Hoskinson is already in talks with Brad Garlinghouse. Maybe everything is already agreed, but that's just speculation.
USDC and USDT remain in the game. Perhaps we should decide on one and hope the other will join later. USDT has many controversies regarding its backing, so I would prefer USDC.
Our negotiating position would be stronger with RLUSD and a more widely adopted USDM.
EMURGO promised to launch USDA soon. In my opinion, the same applies as to USDM. For a stablecoin from the Cardano ecosystem to succeed, it must compete with the established big players. This means it must expand and offer something better. That's the challenge for a stablecoin.
I hope EMURGO has a good plan and will not request funding from the Cardano treasury.
As a DRep, I prioritize USDM and RLUSD over USDC and USDT. While it's important to have USDC and USDT as well, we first need to understand the details of their deployment.
Let's not forget that during a bull market, it can be more profitable for us to allocate larger amounts from the treasury.
