While stablecoins are pegged to a certain value, cryptocurrency projects that facilitate stablecoins often include a secondary token with fluctuating prices. These altcoin projects are popular with DeFi investors who want to capitalize on the volatility of the crypto market by farming yields and compounding interest from their investments. Crypto expert Mark Arguinbaev covers the three best stablecoin projects worth watching in 2022.
The first altcoin project on the list is USDD
USDD is one of the leading stablecoins in the Tron network. TRON is a blockchain-agnostic, over-collateralized decentralized stablecoin circulating on Ethereum, BNB, and other networks. The stablecoin is similar to Tron’s most popular cryptocurrency TRC20-USDT. It also provides an affordable and fast experience for stable asset exchange on various Blockchains.
The USDD protocol provides the cryptocurrency market with a decentralized, freeze-free and tamper-proof system that is independent of any central authority. It has over 130% secured over-collateralized security for every cryptocurrency. This means that for every $1 USDD issued, over 130% of value is secured in other digital assets on the network. Also, at the time of writing, USDD’s collateral rate is quite high at 318%!
Over-collateralized stablecoins are a popular trend in crypto, especially after the Terra USD (UST) crash. Securing large amounts of stablecoins in digital assets gives the newfound investor and user confidence that the asset will remain stable even during the high volatility of the crypto markets.
Second place project Frax
Frax is the first partially collateralized and partially algorithmic stablecoin. After the Terra collapse, purely algorithmic stablecoins gained a bad reputation in the community. However, Frax embraces both collateral and its algorithmic spectrum for a stabilizer. Frax’s design allows the project to provide a highly scalable and stable on-chain digital asset. Its network consists of Frax (FRAX) stablecoin and Frax Shares (FXS) utility tokens. Frax Shares has a variable price at which users can bet and invest.
Users can stake FXS tokens to generate FXS tokens and earn special buffs, additional management rights and generate profits. Another benefit of FXS is its ability to hedge against US Dollar inflation. This makes it a popular option for those who believe the US economy will continue to decline. Meanwhile, over the past month, Frax Shares have seen a significant price increase. It rose from $4.8 to $7.15 currently. Altcoin price almost doubled in 30 days!
Latest altcoin project Helio
Helio is a relatively new stablecoin on the BNB Blockchain. The project has a dual token ecosystem consisting of the over-collateralized stablecoin HAY and the utility asset HELIO. BNB supports the revolutionary stablecoin. HAY is a stablecoin that provides maximum security with dollar-pegged and over-collateralized. The altcoin is similar to USDD, which ensures that assets are pegged as over-collateralized. It has an additional feature that allows users to borrow tokens and farm yields on the platform.
Helio wants to create a new DeFi and stablecoin infrastructure in the BNB ecosystem. It has low transaction fees and an EVM compatible Blockchain. It also has a new DeF that provides a Proof-Of-Stake-Authority (PoSA) consensus model. It provides an open source, decentralized and permissionless platform with additional forward-looking features. Helio has not yet been released on the main-net. This means that users cannot purchase the tokens yet. That makes HAY and HELIO a stablecoin project worth watching in August 2022.
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