Watch List

Watch List is the list of new stablecoin projects that we are monitoring. We are not making investment in these due to factors like, including but not limited to, a short launch history, market size, governance and control, insufficient collateral, counterparty risk, lacking disclosure of key information, etc.

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

lvlUSD, alUSD, savUSD, openUSDT, iUSD, sigmaSP, USDN, xUSD, mEdge, mMEV, mHYPER, htUSDT, yUSD, USDx, reUSDe, reUSD, AID, USDai, upUSDC, USDz, USP, YU, mUSD (Meze) USDa, satUSD, msUSD, deUSD, scUSD

lvlUSD: stablecoin by Level Finance, and backed by primarily DeFi lending positions. Short launch history.

alUSD (Autonomous Liquidity Vault USD): stablecoin by Almanak Finance, and backed by primiary DeFi lending positions. Short launch history.

savUSD: stablecoin by Avant Protocol. It's backed by DeFi investments, but there's no detials in the website for the breakdown of investments. Short launch history.

oUSDT (openUSDT ): stablecoin by Celo Finance, ChainLink and HyperLane, backed with native USDT. Short launch history and small in size.

iUSD (siUSD): stablecon by InfiniFi, backed by deposits in lending protocols and USDe PTs of different durations. Short launch history.

sigmaSP: The stability pool of Sigma Finance, which is a friendly f(x) Protocol (the launch of fxUSD) fork. Short launch history.

USDN (wUSDN): stablecoin by SmarDEX, a on-chain Perp. USDN is its senior trench token to finance leverage, similar to fxUSD by f(x) Protocol in terms of design.

xUSD: stablecoin by StreamFi. The manage has full control of the underlying. It's essentially a fund with a wide range of strategies and not a stablecoin. [Update on 3 Nov: depegged due to a loss by an external fund manager of $93m.]

mEDGE: stablecoin launched by MEV Capital under the Midas framework and has a diversified range of DeFi strategies. We have give Midas mTBILL tier 1 and Midas mBasis tier 2 ratings, as a recognition of Midas's framework. However, the manage (Edge Capital) has full control of the underlying. It's essentially a fund and not a stablecoin.

mMEV: stablecoin launched by Edge Capital under the Midas framework and is mainly basis trading. We have give Midas mTBILL tier 1 and Midas mBasis tier 2 ratings, as a recognition of Midas's framework. However, the manage (MEV Capital) has full control of the underlying. It's essentially a fund with a wide range of strategies and not a stablecoin.

mHYPER: stablecon launched by Hyperithm, a Korea and Japan based hedge fund, under the Midas framework. It has a diversified range of DeFi strategies. We are of the view that their strategy is aggressive, with a focus on leverage and new stablecoin point farming.

htUSDT: stablecoin launched by Edge Capital under the Midas framework, on the HyperEVM and is mainly basis trading. We have give Midas mTBILL tier 1 and Midas mBasis tier 2 ratings, as a recognition of Midas's framework. However, the manage (MEV Capital) has full control of the underlying. It's essentially a fund with a wide range of strategies and not a stablecoin.

yUSD (vyUSD): stablecoin by YieldFi. There's a discrepancy in the yUSD in circulation and its disclosed assets back (8% as of 13 Aug 2025). In addition, the manage has full control of the underlying. It's essentially a fund with a wide range of strategies and not a stablecoin.

USDx: stablecoin by Stable Labs. It's founded by the ex-Babel Finance founder and team. There's no disclosure of third-party attestation nor any proof of reserves backing the stablecoin.

reUSDe: stableoin by Resilience Foundation (Re.xyz) and is backed traditional insurance contracts. Capital is deployed into regulated insurance lines like homeowners, auto, and workers' comp to earn returns from underwriting premiums. They are backed by real world financial assets.

reUSD: stablecoin by Resilience Foundation (Re.xyz), a basis trading product similar to USDe by Ethena.

AID (AIDaUSDC, AIDaUSDT): stablecoin by GAIB. AID is a synthetic dollar backed by a basket of GPU financing deals, including GPU-backed debt and GPU cash flows. It serves as a unit of account of the underlying GPU asset portfolio that GAIB manages. AIDaUSDC and AIDaUSDT are pre-deposits. They are backed by real world financial assets.

USDai: stablecoin by USD.ai protocol. The stablecoin is mainly for financing software companies with computer and server hardwares, such as GPU, as collaterals. However, as of 24 Sept 2025, all the funds raised by USD.ai from issuing USDai stablecoin is not yet lent out, but invested into $wM, the M0 protocol stablecoin. The real-time data is available on M0's official dashboard.

upUSDC: stablecoin by Upshift. It's backed by loans to institutions, managed by August. Per the description in the website, it's overcollateralised but details are not revealed. A port of the un-used USDC (about ⅓ by 13 Aug 2025) are parked in DeFi protocols.

USDz: stablecoin by Anzen. This is backed by uncollateralised loans, mainly SME credit loans from Percent.

USP: stablecoin by Pareto. This is backed by uncollateralised loans, to hedges funds including FalconX, Fasanara Digital, Bastion Trading, and Adaptive Frontier.

YU: stablecoin by Yala. It is over-collateralised by BTC, i.e. assets not on the same blockchain. Yellow Flag: we noted some unconventional behavior in the team wallet here.

mUSD (Mezo): stablecoin by Mezo. It is over-collateralised by BTC, bridged over to Ethereum using Threshold, i.e. assets not on the same blockchain.

USDa: stablecoin by Avalon. It is over-collateralised by BTC, i.e. assets not on the same blockchain.

satUSD: stablecoin by River. It is over-collateralised by BTC, i.e. assets not on the same blockchain.

msUSD (smsUSD): stablecoin by Main Street. This is the vault token for Main Street's option arbitrage business. It's collateralised by Main Street's holdings in Deribit, and Main Street provides a way to verify it real-time. The stablecoin is small in size and has a short launch history.

deUSD: Stablecoin by Elixir, which has a working relationship with Securitize. deUSD is mostly collateralised by sUSDS, with some off-chain exposure in funding rate hedging in CEXs. [Updated on 3 Nov, it was downgraded from Tier 3 due to investment in $xUSD].

scUSD: Stablecoin by Ring Protocol on Sonic chain. Over-collateralised with solid underlyings, but the collateralised mechanism is cross-chain. [Updated on 4 Nov, it was downgraded from Tier 3 due to investment in $xUSD].