Author: MYKEY researcher Jiang Haibo

quick preview

• Author: MYKEY researcher Jiang Haibo

• quick preview

• The market capitalization of major stablecoins rose to $12.223 billion.

• Last week, the circulation of USDC, BUSD, and DAI increased by 6.6 million, 6.17 million, and 7.88 million respectively, while the circulation of USDT remained unchanged.

• As of the evening of July 19th, Terra’s payment gateway (wallet) CHAI is the DApps with the most active users, with 44,300 active users in the past 24 hours.

1. Overview of Stablecoin Data

market liquidity

market liquidity

Source: MYKEY, CoinMarketCap, Coin Metrics

At present, the market circulation of major stablecoins is about 12.223 billion US dollars, and the market value continues to grow.

Source: MYKEY, Coin Metrics

Number of currency holding addresses

Number of currency holding addresses

Source: MYKEY, DeBank

Last week, the number of major stablecoin holding addresses in the Ethereum network increased by 36,072 in total.

Source: MYKEY, DeBank

Active addresses

Active addresses

Source: MYKEY, Coin Metrics

Number of transactions on the chain in 24 hours

Number of transactions on the chain in 24 hours

Source: MYKEY, Coin Metrics

image description

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

The average daily transaction value of major stablecoins fell by an average of 3.2% last week.

In the 7th issue of the Stablecoin Report, we introduced the compliance and asset transparency of the commonly used collateralized stablecoins. Among them, USDT, which is the most used, has the worst compliance, which also brought a negative impact on the entire cryptocurrency market. Come at some risk. In addition to collateralized stablecoins, there is also a type of algorithmic stablecoins. In this report, we will introduce LUNA, which has risen by 50% in a week.

Source: TradingView

image description

Source: TradingView

• Terra was founded by the founder of TMON, the second largest e-commerce company in South Korea. In the early days of its establishment in 2018, Terra received USD 32 million in investment from institutions such as Binance Labs, Okex, Huobi Capital, Polychain Capital, and FBG Capital. The current circulating market value of LUNA is 121 million US dollars, ranking 71st in CoinMarketCap.

• There are two types of tokens in the Terra blockchain, the native token Luna and the stablecoin family Terra, burning Luna can mint Terra. Terra includes stablecoins anchored to the U.S. dollar, euro, renminbi, Japanese yen, British pound, Korean won, and a basket of currencies. Other types of stablecoins can be added by voting. Unlike MakerDAO and other stable currency systems that use collateralized debt positions, there is a corresponding relationship between the collateralized debt positions in MakerDAO and the person who generated the debt. When the mortgage rate is too low, it will face liquidation. However, there is no such relationship in Terra. Anyone can burn Luna to cast Terra, and can also obtain Luna of equivalent value by sending Terra to the system, which makes Terra anchored to the value of legal currency. For example:

When the price of TerraSDR is less than 1SDR, users and arbitrageurs can send 1TerraSDR to the system to obtain Luna equal to the value of 1SDR.

• When the price of TerraSDR > 1SDR, users and arbitrageurs can send 1SDR worth of Luna to the system to obtain 1TerraSDR.

• The Terra protocol adopts a proof-of-stake mechanism. By staking Luna mining, voting rights can be delegated to verification nodes. In fact, miners also play the role of price oracles. They need to vote on the exchange rate between Luna and the target legal currency assets, and take the weighted average of the vote value to get the final exchange rate. Miners will be punished if their voting errors are too large. Mortgage Luna will also enjoy certain benefits, and its value capture ability is similar to exchange platform currency.

• Mining Terra requires paying miners a seigniorage of 0.1%-1%. According to the white paper, the upper limit of this fee is 1SDR (about 1.39 US dollars), so transactions with higher fees have an advantage over traditional payment methods.

• As Terra usage increases, more Luna will be burned to forge Terra.

Prophecy rewards and gas fees.

According to calculations, in the 199 days from the beginning of the year to the present, the average annualized return of staking Luna is 12.8%. At present, the number of Luna mortgaged is 305 million, and the mortgage rate is 30.59%. Mortgage income includes seigniorage, prophecy rewards and gas fees.

Source: station.terra.money

Because of the relationship between the founders, Terra has attracted a large number of users. Terra and e-commerce partners including Woowa Brothers, Qoo10, Carousell, Pomelo, and TIKI jointly established the Terra Alliance. As can be seen from the figure below, Terra has attracted More active users, currently Terra has a total of 1.758 million users. Over the past 30 days, Terra has averaged 5,562 daily active users. In the past 6 months, the number of users of Terra has increased by an average of 10.57% per month.

Source: station.terra.money

According to Dapp.com's ranking, Terra's payment gateway (wallet) CHAI had 44,300 active users in the past 24 hours (the evening of July 19), making it the DApps with the most active users.

Through the above analysis, we can see that in addition to the fiat-backed stablecoins we are familiar with, many people also use Terra for payment. Among the top 100 blockchain projects by market value, there are also projects related to payments or stablecoins such as Crypto.com, MCO, Nano, MonaCoin, and Reserve Rights. Blockchain is getting closer and closer to our lives.

3. Readers ask questions

secondary title

3. Readers ask questions

Question 1. The interest rate of Maker DSR (Dai Saving Rate, DAI deposit rate) is 0, why there are still 70 million DAI stored in DRS?

Answer: According to DAI Stats, the total supply of DAI is 205 million, of which 131 million are ERC20 tokens, and another 69.8 million are stored in DSR. If DAI is stored in platforms such as Aave, there is an annualized interest rate of 4%, and there is really no reason for investors to store DAI in DSR. After our multi-party verification, Compound has deposited the market liquidity part (deposit and loan balance) into DSR. At present, the total deposit of DAI in Compound is 774 million, the total loan is 717 million, and the difference between deposit and loan is 66 million.