Tier 2 Stablecoins

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 USDx hyUSD USD+ USDC+ USDM

USDT: There's a challenge on USDT's fiat reserve, as they are not regulated by the USA/Europe regime.

USDe: Ethena's USDe is not a decentralised stablecoin and its reserve is managed by MPCs, which means there's no on-chain transparency. In addition, whilst limited by MPC custodians, USDe does have some off-chain exposures to CEXs like Binance, Bybit and OKX.

USDx: Synthetix's new stablecoin on Arbitrum. It bears the trader's PnL in the Synthetix ecosystem.

hyUSD: One of Reserve's several stablecoins. This is a border line Tier 1 and Tier 2 stablecoin, and we are monitoring it. Currently, we keep it as Tier 2 due to its size.

USD+ and USDC+: Stablecoins from Overnight. They are collateralised but they are driven but off-chain algorithms that are not made public.

USDM: Mountain Protocol's stablecoins backed by Treasury bill investments. We rely on S&P and Bluechip's ratings to accept this as a Tier 2 stablecoin.