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What's The Best Stablecoin?

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[Image: Stable Kwon and his stable bags]

I still remember those days when the biggest live Youtuber — Crypto Banter, tell all his subscribers to change their stablecoin holding to Terra UST. I was their loyal audience at that time, but I didn't follow their call to action simply because I was too lazy to swap stablecoin. That's how I dodge a bullet; my procrastination saved me.

UST has changed all our lives in some way. After the tragic de-pegging event, one question lingers in our mind: "Are stablecoins safe? If so, which stablecoin is the safest?" I know we all have contemplated those questions as the slight de-pegging of USDT that happened soon after the death of UST proved it. We're all vulnerable to mass hysteria and extrapolating to the wrong sentiment, which causes the USDT FUD to resurface again for god knows how many hundredth times at this point. Because I knew USDT FUD would occur every few months, I swapped my BUSD to USDT while It was de-pegged and earned a few basis points when everything returned to normal again. Was I confident? Nah, I was shaking. That's how much we're prone to collective panic and fear.

The Best Stablecoin

Unfortunately, there's probably no "best" stablecoin. If there's a best out there, market liquidity will probably flood to it already, and so far, we know USDT is not the best. To save time for me and you, I outlined a few promising stablecoins below (in point form):

USDT

Issuer: Tether Limited Inc. Type: Asset-backed stablecoin Market cap: $66 billion Good: large liquidity, long history, since 2014 Bad: not as "transparent" as another stablecoin

USDC

Issuer: Centre Consortium Type: Asset-backed stablecoin Market cap: $55 billion Good: best stablecoin in terms of credibility and transparency Bad: fewer trading pairs available in CEX.

DAI

Issuer: MakerDAO Type: Over collateralized stablecoin Market cap: $6.9 billion Good: decentralized, over-collateralized (good for the safety of your pocket) Bad: decentralized (proned to hacks and exploits) over-collateralized (bad for the market)

BUSD

Issuer: Paxos Trust and Binance
Type: Asset-backed stablecoin Market cap: $17.8 billion Good: Convenient to use in Binance, monthly audit report from Paxos
Bad: Tied to the survival of the private company, Binance

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