Kuusho ↑
@kuusho
There's a stablecoin project building on MegaETH that has just as much of my attention now as Plasma. Cap. No cap, that's literally the name. Here's a quick intro. This post covers: - A summary of Type-1 and Type-2 stablecoins - Where does the yield come from? (a type-3 introduction) - Yeah, No Cap. - CAP SUQs
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Kuusho ↑
@kuusho
TLDR of Type-1 and Type-2 yield bearing stablecoins. The key differentiator between these types of stablecoins, is who makes the decision of where to get yield from. With Type-1 stablecoins, decisions are made solely by the team behind the protocol. Where to invest, the kinds of assets to invest in, all lie in the hands of the team.
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Kuusho ↑
@kuusho
With type-2, these decisions lies in the hands of a DAO (Decentralized Autonomous Organization) and by now we all know why this is annoying. Where does the yield come from? Typically low-risk bond, treasury bases strategies.
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