Stablecoins aren’t all the same.
Most stablecoins you hear about, like USDC or USDT, are backed by dollars in a bank. But another type is starting to gain traction, synthetic stablecoins.
They don’t sit on fiat reserves. They engineer stability using collateral, hedging, and yield strategies.
Types of stables ↓
> Fiat-backed → dollars in a bank (USDC, USDT)
> Crypto-backed → overcollateralized on-chain (DAI)
> Algorithmic → pure supply/demand games (RIP UST)
> Synthetic → derivatives + delta-neutral strategies
The difference with synthetics is that they’re productive.
Your “dollars” aren’t just stable, they also generate yield on-chain (often 5–15%).
@FalconStable ’s USDf is a good example:
> Overcollateralized with multiple assets
> Maintains peg via delta-neutral positions across DeFi + CEXs
> Users can stake to earn 8–12% APY
> Daily attestations + institutional custody
…but higher yields = higher complexity/risk.
Always DYOR before diving in.
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