Introduction

Methodology

Osmosis Stablecoins

In the above couple graphs we are going to be looking at the stable coins that are on Osmosis and which ones are the most popular. As you can see there is one clear winner in terms of having the most usage and that is USDC. This token is used far more in terms of transactions and in the amount of volume. USDC accounts for nearly 85% of the sum sent on Osmosis clearly showing that the other stable coins are not nearly used as much. If you look at the graph showing the sum sent over time as well, more recently there has been the most activity that Osmosis has ever seen and the stable coin USDC has been sent far more than any other. Now one reason that this could be is because USDC is considered a safer stable coin. When looking at the coin itself they make a great effort to comply with government regulations and audits as well. When it comes to stable coins what they have as backing is what gives them their value and USDC is far more transparent about their reserves as well which would give people more comfort when trading and holding these assets.

Thorchain

On Thorchain we see a very similar outline of how the stable coins are used. First comes USDC by a large margin followed by USDT and then DAI. On Thorchain there is a bigger difference between USDT and DAI than on Osmosis, but that is also partly due to USDC having less of market share so USDT took that up. Even with the most recent rise in the use of stable coins, this being the highest we have ever seen on Thorchain, only USDT and USDC are really being used. The reason we are most likely seeing this is because USDC and USDT are both managed by centralized companies and have been said to have collateral in the make of traditional financial assets. What does DAI have? DAI is backed by many different crypto's such as USDC, which is already a stable coin, Ethereum and even WBTC, wrapped Bitcoin. This means the stable coin itself is far more sketchy than either USDC or USDT. This would be a major reason that users on either Thorchain or Osmosis would choose not to use DAI.

Conclusion

• The most used stable coins in order from greatest to least are USDC, USDT, and DAI

• USDC and USDT are both backed by centralized companies and have traditional financial assets as their collateral, whereas DAI uses cryptocurrencies as its collateral, which is why it is not as commonly used as USDC or USDT

• USDC dominates the market in terms of any comparison between stable coins