While stablecoins are tied to a specific value, cryptocurrency projects facilitating the stablecoin often feature a secondary token with fluctuating prices. Stablecoin projects are popular with DeFi investors looking to capitalize on crypto market volatility by yield farming and earning compound interest on their investment. Like Metaverse cryptocoins, stablecoin projects are growing in popularity as investors realize the significant benefits these projects can bring to the broader crypto ecosystem. This article looks at The VR Soldier’s pick of the top three stablecoin projects to watch in August 2022.
#3USDD
One of the leading stablecoins on the Tron network is USDD, an over-collateralised, decentralized, off-chain stablecoin circulating on TRON, Ethereum, BNB and other networks. The stablecoin is similar to Tron’s most popular coin, TRC20-USDT, and offers an affordable and fast experience for exchanging stable assets on different chains.
The USDD protocol provides the cryptocurrency market with a decentralized, freeze-free, and tamper-proof system that is independent of any central authority. It offers over 130% overcollateralized security for each coin. This means that for every USDD dollar spent, over 130% value is secured in other digital assets on the network. Additionally, USDD’s over-collateralisation is a whopping 318% at the time of writing!
Over-collateralized stablecoins are a popular crypto trend, especially after the Terra Luna collapse. Securing stablecoins with an excess amount in digital assets gives newfound investor and user confidence that the asset will remain locked in even during the high volatility of crypto markets.
#2 Frax
While USDD is a fully overcollateralized stablecoin, Frax is the first partially collateralized and partially algorithmic stablecoin. After the collapse of Terra Luna, fully algorithmic stablecoins received a bad rap in the community. However, Frax’s concept of embracing both the secured and the algorithmic spectrum of maintaining a bond makes it a unique project worth keeping an eye on in August 2022.
Frax’s design enables the project to provide a highly scalable and stable on-chain digital asset. Its network consists of the Frax (FRAX) stablecoin and the Frax Shares (FXS) utility token. Frax Shares has a variable price that users can bet on and invest in.
Users can lock FXS tokens to generate veFXS coins and earn special boosts, additional governance rights and earn profits. Another benefit of FXS is the ability to hedge against US dollar inflation, making it a popular option for those who believe the US economy will continue to contract.
Over the past month, Frax shares have seen a significant increase in price from a low of $4.8 to the current $7.15, nearly doubling in value in 30 days! If you’re looking for a grossly underrated and undervalued stablecoin project, we recommend checking out Frax.
#1 Helio
A relatively new stablecoin built on top of the BNB chain is Helio. The project includes a dual token ecosystem consisting of the over-collateralized stablecoin HAY and the utility asset HELIO. The revolutionary USD stablecoin is powered by BNB and users can currently try the testnet app available on the Binance testnet chain.
HAY is a decentralized stablecoin built on the BNB chain pegged to the US Dollar, offering maximum security through over-collateralized borrowing. Similar to USDD, which secures its commitment by over-collateralizing assets, HAY offers a similar solution with an added feature that allows users to borrow tokens and farm on the platform.
Helio intends to create a new DeFi and stablecoin infrastructure in the BNB ecosystem that will be an open-source, decentralized and permissionless platform with low transaction fees, an EVM-compatible blockchain, Proof-of-Stake Authority (PoSA) -Provides consensus model, and other forward-looking features.
Helio is yet to be launched on mainnet, which means users cannot yet buy their tokens; this makes HAY and HELIO a perfect stablecoin project to check out in August 2022. If you’re looking to get early into a next-gen stablecoin project, we recommend keeping a close eye on Helio this month.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stablecoin project.
Follow us on Twitter @thevrsoldier to keep up with the latest Metaverse, NFT, AI, cybersecurity, supercomputers and cryptocurrency news!
Image source: cuteimage/123RF
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.