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To help crypto market participants keep updated on the development status of stablecoins, we launched the MYKEY Stablecoin Report to share our interpretation of the development status of stablecoins and analysis of their development trends. Looking forward to maintaining exchanges with peers and jointly exploring the development prospects of stablecoins.

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• The market capitalization of major stablecoins reached $15.961 billion, an increase of $759 million compared to last week.

• Tether migrated 1 billion USDT from Tron to Ethereum, and additionally issued 120 million USDT on Ethereum, and issued twice a total of 400 million USDT on Tron.

• On the evening of August 23, the gas fee spent on USDT transfers within 24 hours accounted for 10.73% of the Ethereum gas fee.

• Curve's deposits include 333 million USDC, 307 million USDT, 236 million TUSD, 70.7 million DAI, 23.39 million sUSD, 290,000 BUSD, and 220,000 PAX. (including cToken and yToken)

• The loan balance of DAI in Compound is 217 million, accounting for 49.2% of the DAI supply.

• 1. Overview of Stablecoin Data

1. Overview of Stablecoin Data

We first review the changes in the basic information of each stablecoin in the past week (August 15, 2020 to August 21, 2020, the same below).

Source: MYKEY, CoinMarketCap, Coin Metrics

Source: MYKEY, CoinMarketCap, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

In the past week, Tether migrated 1 billion USDT from Tron to Ethereum, and issued an additional 120 million USDT on Ethereum, and issued two additional USDT on Tron for a total of 400 million USDT. The circulation of USDC, PAX, BUSD, TUSD, DAI, and GUSD increased by 134 million, 2.59 million, 4.34 million, 79.99 million, 19.87 million, and 140,000 respectively, while the circulation of HUSD decreased by 1.28 million.

Source: MYKEY, DeBank

Source: MYKEY, DeBank

Source: MYKEY, DeBank

Source: MYKEY, DeBank

Source: MYKEY, Coin Metrics

Active addresses

Source: MYKEY, Coin Metrics

Last week, the number of daily active addresses of major stablecoins increased by an average of 1.64% from the previous week.

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Compared with the previous week, the daily number of transactions of major stablecoins decreased by an average of 4.15%.

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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2. On-chain usage of stablecoins

Stable currency has become a very important infrastructure, especially for public chains that are preparing to develop DeFi, it is almost indispensable. The public chains Ethereum, EOS, and TRON with a relatively complete ecology have not only introduced USDT issued by Tether, but also have their own on-chain collateralized stablecoins DAI, EOSDT, and USDJ. For Ethereum, stablecoins are an important asset, providing the foundation for the ecology on Ethereum. But at the same time, stablecoins have also brought some bad effects, such as congestion on the chain and skyrocketing handling fees. In this report, we will introduce to you the on-chain usage of stablecoins in the Ethereum network.

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Source: etherscan.io

The second most expensive gas fee is USDT. In the past 24 hours, the gas fee accounted for 10.73% of the Ethereum network, with a total cost of 780.69 ETH, a total of 305,800 US dollars. Among the top 50 transaction fees, there are USDC and DAI, which account for 0.47% and 0.22% of Ethereum Gas fees respectively. The transfer of USDT, USDC, and DAI alone accounted for 11.42% of the Gas fee in Ethereum.

There are also some contracts highly related to stablecoins that also cost a lot of Gas fees, such as Curve.fi: y Deposit, Maker: Proxy Registry. Stablecoins are also widely used in decentralized trading platforms such as Uniswap, 1inch, and Balancer. It can be expected that transactions related to stablecoins spend a relatively high proportion of Gas fees in Ethereum.

The total lock-up volume is an important indicator to measure the usage scale of DeFi projects. A large part of the lock-up volume in Aave, Curve, and Compound comes from stablecoins.

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Source: app.aave.com

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Source: curve.fi

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Source: compound.finance

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3. Readers ask questions

1. Why didn’t USDT be included in the cryptocurrency whitelist issued by the New York Department of Finance last week?

Answer: In the cryptocurrency whitelist announced by the New York Department of Financial Services (NYDFS), USDT, USDC, and DAI are not on the list, but PAX, BUSD, and GUSD are on the list. I think this is because of compliance issues. GUSD and PAX were the first to pass the NYDFS approval for issuance, so it is not surprising that they can pass the NYDFS whitelist this time. BUSD is a stable currency jointly launched by Binance and Paxos, and it has also been approved by NYDFS for issuance.

USDC was developed by Center Consortium, a company jointly invested and operated by Coinbase and Circle. It complies with the supervision of the US "Money Transmission Act".

Although USDT has a large scale, it has the worst compliance and does not even issue a monthly audit report like other stablecoins. Last year, the New York Department of Justice also accused Bitfinex of illegally misappropriating $850 million from Tether to make up for losses. Therefore, USDT is the most difficult to comply with among the commonly used off-chain collateralized stablecoins.

On the other hand, DAI relies entirely on on-chain mortgage generation, without the participation of centralized institutions, and has the characteristics of anti-censorship, which is uncertain for supervision.