Tier 3 Stablecoins

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.

Currently, they are (click hyperlinks for our research reports for some stablecoins):

DOLA, alUSD, lisUSD, USR, mBasis, USDF, USDf, USN, YUSD, eUSDe, tUSDe, pUSDe, gUSDC, cUSD/stcUSD, syrupUSDC/syrupUSDT, yoUSD

DOLA: Reputatable and well-adopted stablecoin by Inverse Finance, a solid and innovative DeFI OG team. Our concern on DOLA is its protocol owned liquidity.

alUSD: One of the oldest stablecoins by Alchemix team. Whilst over-collateralised, the stablecoin regularly trades at a few percentage discounts from time to time, due to its slow repegging system.

lisUSD (prev. HAY): One of the oldest stablecoins by Helio and is the most active native stablecoin in BSC Chain. It's an old-school CDP over-collateralisation model, but trades at discounts regularly.

USR: An Ethena USDe compeitior by Resolv Protocol. Resolv is a Binance Labs investment. USR, like USDe, uses off-chain custodians and CEXs to earn funding rates with the capital it pools. We usually keep all finding rate / basis-trade stablecoins as Tier 3, with the exception of USDe only due to its high level of market adoption.

mBasis: Funding rate stablecoin by Midas. Relatively small in size.

USDF: Stablecoin by Aster (prev. Astherus), a Binance Labs invested project. It's a fund rate arbitrage stablecoine as well but likely it is hedging more on its own perps.

USDf: Stablecoin by Falcon, a business devision of DWF Labs. It's a funding rate arbitrage stablecoin but has a CDP-type innovation that allows for non-stablecoin collaterals.

USN: Stablecoin by Noon Capital. USN is backed by a diversified reserve consisting of USDT, USDC, and short-term U.S. Treasury bills, all held in secure custodial wallets. Noon Capital uses Accountable for real-time monitoring of its collaterals.

YUSD: stablecoin by Aegis. It is a basis trading strategy protocol, mainly using BTC on OKX. Aegis uses Accountable for real-time monitoring of its collaterals.

eUSDe, tUSDe, pUSDe: Ethena family of stablecoins, all backed by USDe. eUSDe is the pre-deposit token of Ethereal, Ethena's DEX. tUSDe is the pre-deposit token of Terminal, Ethena's the spot exchange for institutions. pUSDe is the pre-deposit token of Strata Finance, Ethena's structured yield products platform.

gUSDC: The USDC counterparty pool of Gains Network. This is a pool unit and not a stablecoin, but it has a long history and yield has been stable over time.

cUSD/stcUSD: Stablecoin issued by Cap Money, a vault token for a stablecoin pool lending to institutions with restakers providing default obligation guarantee to lenders.

syrupUSDC/syrupUSDT: Stablecoin issued by Maple Finance, a vault token for a stablecoin pool lending to institutions. All lendings are administrated by Maple Finance in-house and are overcollateralised by assets either on Ethereum or kept custodian with leading custodies like Bitgo.

yoUSD: The vault units of YO Protocol's USD vault, launched by ExponentialFi. This is a on-chain hedge fund manager, but most investments are safe in nature and the portfolio is reasonable diversified.