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)
  • Collateralised
    • DAI
    • Synthetix
  • Algorithmic
    • Terra
    • Ampleforth
    • Basis

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