A Comprehensive Guide to Decentralized Stablecoins

A few popular stablecoin tracking sites have their own unique approaches to categorizing the various types of stablecoins, but for this article I’m going to use my own approach to classifying stablecoins.

Most decentralized stablecoin monetary systems fall into one of two design categories: collateralized and non-collateralized economies. But if we want to gain a better understanding of how these non-fiat backed stablecoins actually work we can divide them into 4primary sub-types: elastic supply, bond-redemption, collateralized debt position and self-collateralized stablecoins. The following diagram is a non-exhaustive list of decentralized stablecoin projects based on the types of stabilization mechanisms they have adopted:

Original source

Add comment

Please Sign in to be able to leave comments.