• At present, the market capitalization of major stablecoins has reached 14.387 billion U.S. dollars, an increase of 980 million U.S. dollars compared with last week.

• Last week, USDT was issued 6 times, and the circulation increased by 930 million. Among them, 4 additional issuances were made on Ethereum, with a total of 480 million USDT; 2 additional issuances were made on Tron, with a total of 450 million USDT. The circulation of USDT is growing rapidly.

• The circulation of USDC increased by 23.99 million to 1.107 billion.

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1. Overview of Stablecoin Data

1. Overview of Stablecoin Data

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Source: MYKEY, CoinMarketCap, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

In the past week, USDT was issued 6 times, and the circulation increased by 930 million. Among them, 4 additional issuances were made on Ethereum, with a total of 480 million USDT; 2 additional issuances were made on Tron, with a total of 450 million USDT. The circulation of USDC, PAX, BUSD, HUSD, DAI, and GUSD increased by 23.99 million, 8.09 million, 6.31 million, 3.91 million, 8.99 million, and 840,000, respectively. The circulation of TUSD decreased by 2.39 million.

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Source: MYKEY, DeBank

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Source: MYKEY, DeBank

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Active addresses

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

The daily trading volume of major stablecoins decreased by an average of 2.2% from the previous week. On July 27 of the previous week, USDT transfers on Ethereum were unusually high.

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2. Reserve Protocol

Among the digital assets that may be listed on Coinbase recently, Reserve Rights in the stable currency project are included. Reserve Rights token (RSR) is the token used in the Reserve Protocol to promote the stability of the stablecoin Reserve token (RSV). At present, the application of stablecoin RSV is still relatively small. In this report, we will introduce the Reserve protocol to you.

Reserve is a flexible stablecoin pool that reduces the risk of stablecoins through asset diversity and decentralized governance. Reserve's mortgage assets include USDC, PAX, TUSD, etc. Normally, the price of RSV will be automatically adjusted by the open market to around $1. When demand falls, say RSV is priced at $0.98 on the open market and the redemption price is $1, arbitrageurs will be incentivized to buy RSV on the secondary market and redeem $1 worth of reserves, pushing up RSV s price. When demand rises, if the price of RSV is $1.02, arbitrageurs will be motivated to mortgage $1 of assets to mint RSV and sell them in the market, reducing the price of RSV.

While Reserve chooses a portfolio with less downside risk, the value of the staked tokens may still decline. When this happens, the Reserve protocol will sell newly minted RSR tokens to replenish the collateralized assets.

In extreme cases, if the collateral assets depreciate and no market participants are willing to buy newly minted RSR at the lowest auction price of RSR, the collateral assets of RSV may theoretically be lower than 100%. In this case, the Reserve protocol will amplify the price range set to protect RSV. Under normal circumstances, the range of RSV is close to $1. In a crisis, such as a 5% depreciation of mortgage tokens, the price range of RSV may be adjusted to $0.95-$1.05. This means that in the short term, redemption of RSV can only get $0.95 worth of mortgage assets, while newly minted RSV requires $1.05 of mortgage assets. In this way, runs are prevented, and the last person to redeem the mortgaged assets gets the same percentage as the first person to redeem it.