Collateral, not yield, will decide which stablecoins win
The author argues that the long-term success of stablecoins depends on their utility as collateral in financial markets rather than the yield they offer. While high yields attract initial attention, true adoption requires integration into trading and lending venues.
Why it matters
This perspective challenges the current market focus on yield-farming, suggesting that stablecoin sustainability is tied to infrastructure integration.
It is also, I'd argue, a race to optimize the wrong metric.
The article presents an analytical market opinion on crypto-economics without partisan political bias.
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