What are some stablecoin projects built on Ethereum and how do they distinct between each other?
Stablecoins - regardless of the platform on which they've been implemented - generally fall into three broad categories:
- Centralised / IOU : A centralised controller holds an asset and creates IOUs that can be traded back in for the asset at a later date.
- Collateralised: Coin is issued in response to collateral being pledged. Value is kept stable by various means.
- Algorithmic (also called Seigniorage Shares ): Value of the coin is kept stable by algorithmically expanding or contracting the supply of coins in circulation.
For details on how each of these types work, see a general overview, such as this CoinMarketCap blog post.
Below are few examples of each type in the Ethereum ecosystem. (The list isn't exhastive - this is just what I have in my notes.)
- Centralised / IOU
- TrueUSD (ERC-20)
- DGX Token (don't think this is ERC-20)
- Gemini Dollar (ERC-20)