Decentralized Stablecoins Strike Research: UST and MIM

Stablecoins are the biggest and most profitable product in the entire market, no proof is needed. This is a view of the growth in market value over the past few years.

It also had the impact of large crowds and stiff competition on the track. It seems like a business model for the early parties to have their own parts stable. So we see USDT on Bitfinex / Tether, USDC on Coinbase / Circle, BUSD on Binance, etc.

While some stablecoins have managed to come apart through best engine optimization, like TradFi's USDT management and BUSD management in the BSC ecosystem, there are plenty of opportunities for laggards to continue to operate. DeFi's Dongfeng, the USDC share of the Ethereum network is almost the same as the USDT, and at the start of last year, the former was only a fifth of the latter.

As a result, we have seen rising stars such as sUSD alUSD UST MIM start their journey one by one, some in failure and others in major trouble. Using the tracking of their growth, we will also explore together what are the key factors that affect or limit the success of the coin.

"Why should someone else use your stable room?" This is a question that all financial security professionals must answer. And get them to spend their money before they force you to use it. That's the answer from Kane, the founder of Synthetics, known as a pioneer in liquid mining.

sUSD is the way to exchange other synthesis devices in the Synthetix system. In the beginning, only SNX, the platform symbol was still available, can be designed according to the product, and the product comparison is very high.

With the further expansion of the Synthetix ecosystem, the use of internal and external incentives (Staking Rewards Liquidity Mining) and the choice of sUSD as a profitable mining platform thanks to the launch of DeFi The Over the summer , sUSD has seen a lot of business. Needs. And this demand also brings good information to the Synthetix value proposition. The higher the demand for sUSD, the more the demand for SNX is used to produce sUSD, and the lower the SNX in the industry, the higher the cost.

However, the process also shows a negative trend for the sUSD. In other words, stablecoins should be able to retain their aftermarket anchors in large areas of the market and should not be overvalued when purchasing large quantities. Following. However, sUSD cannot guarantee the latter, and most of them have a price of 2% or more, because the cost of advertising sUSD is very expensive when the compare price reaches 8: 1.

In addition to integrating with other Synths and integrating the Synthetix system for extracting certain protocols, sUSD does not have multiple application scenarios. So, after the summer craze for DeFi, Synthetix's own ecological contraction and the reduction in mining demand. , sUSD and SNX currency prices also fell into the negative cycle of sUSD demand, and SNX currency prices fell.

Of course, Terra's UST is a complete success for sUSD. In Terra's ecology, UST is even more powerful, still playing the role of sUSD through Synthetix. Compared to the high ratio of SNX and sUSD, Luna can combine UST 1: 1, so the investment is good. In addition, the Terra itself is a public channel compared to the Synthetix, so it can not only tell a bigger story, but also have a larger measuring space, as well as design more situations to carry more USTs. .

As the ecosystem continues to expand and consumers increase, the demand for UST will continue to increase. And it also gives Luna back the value for money.

In the Terra ecosystem, the goal of the project is unique and clear. In other words, create more situations and demand the UST and provide real funding with their own tokens. At the same time, it can also reveal part of Luna's rising spirit.

Taking Terra's first large market share of the Real Estate Asset Mirror Protocol as an example, the real estate used to assemble the CDP from the US $ mAsset asset share is often UST (or d 'other $ mAsset). With the first MIR $ capacity extraction capability enabled, the platform launched TVL once it reached $ 2 billion.

Why is TVL on a legacy platform comparable to TVL on the entire Synthetix platform? Obviously Synthetix has the same thing, and the commentary is more precise. This is because, unlike the game mechanic design of Synthetix miniatures, all types of Synths cost directly from Oracle, and mAsset's second commercial value on the Mirror Platform is punished by AMM. Only users of the Synthetix ecosystem with US electronics are the majority of users who need US inventory expansion, and this type of population is generally small. In addition to those from Mirror, there are LPs that support commodity trading and arbitrage clients that tie stock prices to the stock market. MIR token funding attracted the first group, and the price difference between mAsset and retailers was the last favorite.

The completion of the Mirror and Anchor loan deal boosted demand for UST and led to the first wave of Luna coin value. But things haven't gone well since. In May of this year the market underwent a major overhaul and Terra's ecological performance in retracing this stress assessment was not very good. Due to the network connection, many jobs at Anchor were closed due to their inability to expand their margins, and fear led to choosing to leave more money at that time. Meanwhile, the stable UST once fell to the $ 0.9 level and Luna's stock fell 75% in one week.

But even then, the UST did not fall. After a short time and started working on more ecology, Terra ecology was revised and UST has grown steadily since. After this battle, the group created the UST scene outside of the Terra ecosystem and used it for multiple ecosystems, creating more demand.

Magic Internet Money (MIM) is another stable business that has grown. Compared to UST's 1: 1 casting, which is paid for with Luna's cash, MIM follows the CDP-like approach to MakerDAO and aims to bring out long-tail assets that MakerDAO does not participate in.

Unlike UST, which has become a hot key, MIM was born in Ethereum surrounded by powerful enemies. What sets it apart from its many competitors is that it intelligently captures many important moments. The first thing that fixed income securities need to be addressed are the material and income issues. The answer to this question is not easy. The comeback. But how to promote productivity is another question.

In the meantime, bribe.crv and Votium have entered into an online one-stop-shop for secure currency Curve loans. All staff will be able to reward vCRV holders for turning their weekly CRV broadcasts into action. Higher CRV increases will draw more fluid to the gauge, which also means MIM needs more and more parts.

While the market did not see the lending potential as it is today, the MIM team saw it quickly and invested heavily in the first few weeks to accelerate CRV support for the MIM measure. 30% of weekly outings. This has also resulted in a rise in MIM coins, with TVL rapidly increasing by 1 billion characters.

Another difference between the competition between MIM and MakerDAO is the multi-channel export. Unlike MakerDAO, which only refers to the Ethereum keychain, MIM contracts ship across multiple chains. In the process, MIM also worked with the AnySwap cross-chain protocol to allow tokens to move from the L2 to L1 bridge in real time, eliminating the 7-day wait time and dramatically improving the efficiency of cross-payment. chain.

However, support and ideas can only make the first position in the short term a challenge. Managing the application scenario is most important for the long-term invincibility of 3CRV (USDT USDC Dai). (Sorry, half of the funding for MIM-3CRV measures is actually funding for 3CRV. Half a dollar is used to attract competitors as needed.)

Of course, the MIM team is well aware of this, and the reduction in daily orders and the spread of MIM-UST metrics is proof of this. In addition, the team also pays special attention to the development of application scenarios in addition to the L2 to L1 transition time as mentioned above, they are also working with various DEXs to write Partner with MIM based on the benefits. From.

https://twitter.com/CurveFinance/status/1466733088524881921

Currently on Curve.fi, MIM measures the packaging industry primarily at the top, but MIM's growth has stalled. I think the reason is that MIM has gradually moved from a model that relies on incentives to stimulate demand to a model that increases demand dependence. , it is possible that the other two stable industries will compete with it. Until recently, people were slowly starting to apply it with the MakerDAO and DAI standards.

UST and MIM are two stable differences, but the reason they may end is if their team addresses issues and needs in part through support, independent of the personal preferences of the project developer. Scene enhancement issues. The challenges they will face will be greater in the future, and we will see how far they can go.