Stablecoins

The growth of non-volatile assets pegged to a fiat currency has been a one of the clear trends in crypto in the last few years. However, during the past days, a big fatal event occurred when Terra UST peg token started to depegging from $1.

Introduction

What is SushiSwap?

SushiSwap is decentralized cryptocurrency exchange and automated market maker built on Ethereum. Holders of SUSHI can participate in community governance and stake their tokens to receive a portion of SushiSwap's transaction fees.

What is a stable-coin?

Stablecoins are cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities.

Methodology

We are going to look at the Metrics of USDC, USDT, DAI, and FRAX.
We are looking to see how these tokens have been performing and what growth could be expected of them.

Sushiswap Stablecoin Metrics

Observations

USDC, USDT, and DAI have been dominante on Sushiswap in terms of swaps and volume.
Most days since January 2021 there has been 50 - 100 Million worth of stablecoins swapped.
Stablecoin swaps on Sushi have been declining since October 2022.

Conclusion

On Sushiswap, DAI, USDC, and USDT seem to be very successful on Sushiswap in terms of use and users. One advantage that these stablecoins have that uST did not is that they are over collateralized while UST was under collateralized so there cant be a bank run on stablecoins like this.

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