The Bullish Case for DeFi Stablecoins: DAI, FRAX, LUSD, sUSD, GHO, and crvUSD.
And why GHO and crvUSD is actually a blessing in disguise for the older DeFi stablecoins.
The collapse of Terra's UST has cast a dark cloud over the decentralized stablecoin ecosystem.
However, DAI, FRAX, LUSD, and sUSD have survived the most volatile period in the history of crypto.
With new entrants like Aave's GHO and Curve's crvUSD, there is also more innovation in the space.
Now with regulators cracking down on BUSD and crypto overall, here is the bullish case for DeFi stablecoins.
The Bullish Case for Maker’s DAI
DAI is the most established and widely used decentralized stablecoin.
DAI’s market cap of $5B is five times larger than FRAX ($1B) and 22 times larger than LUSD ($226M).
DAI also has a monetary premium that comes from factors such as its spot liquidity, proven USD peg over time, support in many DeFi protocols, and growing usage in payments and in the real world, like in Argentina.
DAI is a short-term store of value to excape from crypto’s volatility.
The same …