The stablecoin market is ever-changing. Can new players challenge the dominance of USDT and USDC?

The stablecoin market is undergoing a transformation. Currently, USDT and USDC account for 86% of the total market capitalization of stablecoins, yet they do not share the earnings generated with users. This presents an opportunity for other stablecoin competitors. Let's take a look at three emerging projects.

The current stablecoin market size is approximately $250 billion, with USDT accounting for 62% and USDC for 24%. These two giants have a noticeable weakness: they do not pay any yield to holders. All the earnings generated from the collateral (approximately 4% annualized rate) belong entirely to the company. This practice has sparked a strong demand from users for profit sharing, creating opportunities for other stablecoin projects.

1. Resolv's USR: 8.6% annual yield

Resolv offers two core products: USR and RLP. USR is a stablecoin fully backed 1:1 by Bitcoin and Ethereum, generating annualized returns through hedging positions. USR has 168% collateralized assets, with very low risk, and an average annualized return rate of 8.65% far exceeding similar products.

The advantages of USR include:

• Higher than the market average return rate
• Fully backed by mainstream cryptocurrencies
• Highly transparent
• Protected by the RLP mechanism
• Zero fees
• Supports instant staking and unstaking

Disadvantages:

• Available only on the Ethereum network, which may result in higher transaction fees.
• You need to stake USR tokens to earn rewards.

2. Noble Dollar's USDN: 4.1% annual yield

The core feature of USDN is that users can earn a 4.1% yield from U.S. Treasuries based on their holdings daily, without the need for locking or staking. Although its current use cases are limited, it is set to gain support in a multi-chain ecosystem soon.

Advantages of USDN:

• Stable returns backed by U.S. Treasury bonds
• High Transparency
• No need to stake, daily settlement
• Support for fiat currency purchases
• The native cross-chain bridge facilitates transfers.

Disadvantages:

• Current application scenarios are limited (but are being improved)
• The yield is lower than some competitors.

3. infiniFi's iUSD: 8.5% to 16% annual yield

InfiniFi offers different yields based on user risk preferences. Users deposit USDC to receive iUSD, and the USDC is used for diversified investment strategies. The interest rate for no lock-up period is approximately 8.5%, while locking for 4 weeks or longer can reach up to 16.4%.

Advantages of iUSD:

• Extremely high yield
• High transparency
• Low-yield tier with instant liquidity
• The high-yield tier serves as a safety net for the low-yield.
• Suitable for different risk preference groups

Disadvantages:

• Essentially a USDC deposit certificate, not a true stablecoin.
• There is a risk of insufficient liquidity
• A "de-pegging" situation may occur
• High-risk strategies may result in returns falling short of expectations or principal loss.
• Linked to risks of multiple DeFi platforms

These emerging stablecoin projects provide users with more options, but caution should be exercised when investing. It is recommended to test with a small amount of funds first and consider larger investments only after the market has been sufficiently validated. Keeping an eye on the development of this new track is crucial for understanding the future direction of the stablecoin market.