Stablecoin Tiers

We divide the stablecoins into tiers based on our risk assessments.

As of 28 Oct 2024, the stablecoin tiers are as follows:

Tier 0 (denomination currency): USDC

Tier 1

Tier 1 stablecoins are stablecoins that are clearly fully collateralised with a simple mechanism or a reliable authority. They are:

DAI, USDS, PYUSD, USDP, GHO, eUSD, crvUSD, alUSD, LUSD/BOLD, USDA, deUSD

Tier 2:

Tier 2 stablecoins are stablecoins that demonstrate evidence that thay are fully collateralised, but the mechanism might be complex, or there are additional risk exposures. We will highlight the details for each stablecoins in the sub-sections. They are:

USDT USDe sUSD/USDx hyUSD USD3 USDM/KNOX M mBasis rUSD

Tier 3:

Tier 3 stablecoins are stablecoins that have a question market on collateralisation, e.g. a sizable protocol-owne liquidity, or a debatable way of collateralisation. However, they are well-adopted by the market and have the effective means to monitor their level of collateralisation (beyond monitoring price). We do not invest into Tier 3 stablecoins for the BenchMark Demo Fund for now, but they are for consideration of future demo funds such as the Exotic Demo Fund. As this tier of stablecoins are subject to changes of the stablecoins' operations, we will only add them when we start making investments.