UST is in a death spiral, will other stablecoins(USDT DAI FRAX)?
Colin Wu . 2022-05-11 . Data

Recently, the death spiral of UST and LUNA was a big shock, and many newbies may have concerns about the risk of depeg other stablecoins, here we briefly explain.

 

Crypto stablecoins are divided into three main categories.

  • Centralized fiat-backed stablecoins, such as USDT, USDC, BUSD

  • Decentralized, over-collateralized stablecoins, such as DAI

  • Algorithmic stablecoins, such as UST, FRAX

 

For centralized fiat-backed stablecoins, the only risk may be the issuer's acceptance, as USDT has historically been off-anchor for brief periods, but has been able to return to anchor pricing quickly. Currently, compliant stablecoins like USDC are