how to master stablecoins:
- ask why stablecoins exist: crypto's problem of volatile price
- use the majors first: USDC, USDT, DAI - send, swap, bridge, offramp
- ask yourself how each one stays at $1, wonder
- learn the three main types: fiat-backed (USDC, USDT), crypto-backed (DAI, LUSD), algorithmic (and why most failed)
- study attestations vs audits, read Circle's monthly reserve reports, Tether's quarterly ones
- learn what "depeg" means and look at historical depegs (UST, USDR, circle's SVB writeup, etc)
- understand peg mechanisms: PSMs, redemption arbitrage, AMM curves designed for stables (curve, uni v3 tight ranges)
- farm stables on curve, ethena, pendle, aave, morpho, sky - compare risk adjusted yields
- research newer designs: ethena (USDe, delta neutral), sky/maker (USDS, DSR), frax, crvUSD, GHO
- understand RWA-backed stables and treasury bill yield (ondo, mountain, sky)
- learn redemption mechanics - who can actually redeem at $1, at what size, AND at what fees
- study stablecoin flows onchain: dune, defillama, @stablewatchHQ
- stablecoins as payment rails. onramps, offramps, FX spreads, AML/KYC, total costs (it's not 0.01$, rather 2-3$). fxcintelligence and moonpay have good primers
- explore non-USD stables: EURC, BRLA, XSGD, JPYC. and what corridors they unlock
- who makes money on stablecoins: issuers earn float, apps fight for distribution, chains barely capture transfer fees. read @jonah_b series at blockchain capital
- understand regulatory risk: GENIUS act, MiCA: why issuers can freeze addresses, how, in what cases
- ask smart people or LLMs hard questions about reserve composition, redemption rights etc
if you have questions or need reading recommendations, ask me :)