State of Stablecoins

❗ In this whitepaper, when discussing stablecoins, we are referring to fiat-collateralized, USD-Pegged stablecoins. As of December 2023, the top two stablecoins, USDT & USDC, fall into this category and account for ~88% of all stablecoin marketcap. Consequently, all references to stablecoins in this whitepaper focus on the issues and potential improvements related to fiat-collateralized, USD-Pegged stablecoins. 

Alternative forms of stablecoins, such as algo-stablecoins, crypto-collateralized stablecoins, and precious-metal backed stablecoins have their own unique issues and are not covered comprehensively.