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A new stablecoin has emerged among the top ten U.S. dollar-pegged tokens. Known as USDB, this auto-rebasing stablecoin was developed by the Blast team. Despite the stablecoin economy being underwhelming over the past 30 days, USDB has quietly secured the ninth-largest market capitalization among all U.S. dollar stablecoins.
USDB Climbs the Ranks
The decentralized finance (defi) protocol Blast has introduced a stablecoin named USDB, which currently has a market valuation of $405 million. Blast operates as an experimental layer two (L2) network built on Ethereum, offering native yield on specific crypto assets. USDB is Blast’s native stablecoin, provided to users when they bridge stablecoins like USDC, USDT, or DAI from the Ethereum mainnet to the L2 Blast.
At present, USDB’s token contract has a total supply of 420.44 million, held by 196,979 addresses. The top 100 holders collectively possess 82.93% (348,692,432.25) of the USDB in circulation. USDB’s rise is attributed to its variable yield, similar to USDE. Essentially, USDB is a rebasing dollar-pegged stablecoin that offers a variable yield derived from Makerdao’s onchain T-Bill protocol.
The protocol rebases over time to reflect the yield accrued from the T-Bill protocol. Blast enters the stablecoin market at a time when yield-bearing dollar-pegged crypto assets are highly favored. For example, Mountain Protocol’s yield-bearing stablecoin USDM, backed by U.S. Treasuries, and Ethena’s yield-bearing dollar derivative, USDE. Additionally, Paxos International has launched a yield-bearing greenback crypto token called lift dollar (USDL).
While rebase mechanisms and yield-generating features offer innovative approaches, the concentration of holdings from projects like USDB, USDE, and USDM could pose potential risks to market stability if they happened to falter. The crypto community always remains cautious, recalling Terra’s UST and the collapse of the 20% yield-bearing Anchor Protocol. As the crypto landscape continues to evolve, the sustainability of such innovations will remain a crucial point of scrutiny.
What do you think about the Blast stablecoin USDB? Share your thoughts and opinions about this subject in the comments section below.