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The rise of income-generating stablecoins presents both challenges and opportunities.
The New Era of Stablecoins: The Rise and Challenges of Yield-bearing Stablecoins
With the changes in the global financial landscape, the stablecoin market is ushering in new development opportunities. The traditional dollar-dominated order is collapsing, creating conditions for the emergence of new types of stablecoins. Among them, the yield-bearing stablecoin (YBS) has attracted significant attention as an innovative product.
The core advantage of YBS lies in its ability to provide stable returns for holders, but it also faces many challenges. Currently, YBS mainly relies on on-chain asset staking and U.S. Treasury bonds as sources of income, which carries certain risks. On the other hand, for YBS to truly become widespread, it needs to achieve broader application in payment, trading, and other scenarios.
From the market landscape, USDT and USDC still dominate. Emerging products like USDe have risen quickly, but their market share remains limited. To challenge the existing landscape, YBS needs to establish differentiated advantages in terms of yield, use cases, and more.
The future development direction of YBS may include:
Explore more on-chain assets as sources of income to reduce reliance on U.S. Treasury bonds.
Collaborate with more DeFi protocols to expand application scenarios
Develop practical functions such as payment to increase daily usage rate.
Optimize capital efficiency to improve yield levels while ensuring safety.
Overall, YBS represents a new direction for stablecoins, but it will take time to truly become mainstream. As the crypto market matures, I believe YBS will find its position and provide users with more diversified options.