Interest-bearing stablecoins become the new favorite in the market

Recently, the stablecoin sector has shown new development trends. Some well-known companies and projects have started to enter the stablecoin market, but these attempts are more like imitations of existing models. At the same time, a number of emerging interest-bearing stablecoin projects are rapidly developing, such as Ethena, Sky(, and MakerDAO).

Yield stablecoin ( YBS ) is currently still classified as a type of stablecoin. They attract users by providing yields and distribute part of the asset earnings to holders. This model is fundamentally different from traditional stablecoins and is closer to the deposit-loan logic of on-chain banks.

The history of the development of the cryptocurrency industry can be seen as a history of innovation in asset issuance models. The current wave of yield-generating stablecoin frenzy presents relatively mild characteristics compared to earlier innovations such as ERC-20 and NFTs.

Taking f(x) Protocol as an example, the project has launched various stablecoin products, including rUSD, fxUSD, btcUSD, cvxUSD, etc., and even categorizes fETH as a stablecoin. This reflects the continuous expansion of the stablecoin concept.

Looking back at the development of stablecoins, it can be traced back to Bitcoin. However, due to the significant price volatility of Bitcoin, it is difficult to meet stable payment needs. The emergence of USDT pioneered the era of fiat-backed stablecoins, followed by DAI launched by MakerDAO, which is a representative of on-chain over-collateralized stablecoins.

In recent years, the stablecoin sector has seen continuous innovation, with the emergence of various forms such as algorithmic stablecoins and hybrid mechanism stablecoins. The rise of interest-bearing stablecoins represents a new attempt to combine interest-bearing mechanisms with stablecoins.

Currently, there are nearly a hundred projects involving interest-bearing stablecoins in the market. However, after screening, there may only be a dozen that are truly worth paying attention to. These projects each have their own characteristics in terms of underlying assets, core mechanisms, TVL, and so on.

Similar to early DeFi projects, yield-bearing stablecoin protocols are also continuously integrating other protocols, exhibiting characteristics of multi-chain, multi-protocol, and multi-pool. However, they also face challenges such as the sustainability of returns and the price of the protocol's main token.

In the future, there may be 5 to 6 projects that stand out and become leaders in the field of yield-bearing stablecoins. These projects need to have competitive advantages in various aspects such as technology, funding, and compliance. Although yield-bearing stablecoins have broad prospects, they also need to establish sufficient credibility and reserves, which places higher demands on the project parties.