Decentralization Stablecoin Depth Observation: The Track's Smoke Has Not Cleared, Who Can Claim Victory?

Stablecoins are the infrastructure of the cryptocurrency world, regarded as the "holy grail" of the crypto world. Based on whether they isolate centralization risks, stablecoins can be divided into centralized stablecoins and decentralized stablecoins. As long as they are not completely decentralized, stablecoins face default risks brought on by centralization.

In today's increasingly stringent regulatory environment, decentralization has become an important attribute of stablecoins. However, the stablecoin market is still dominated by centralized stablecoins such as USDT and USDC, which account for 91.6% of the market share. Decentralized stablecoins DAI and FRAX also have to use centralized stablecoins as collateral.

Decentralization stablecoins face a dilemma between scale and centralization risks. On one hand, stablecoins need to achieve a sufficiently large scale to form a positive ecological cycle; on the other hand, excessive scale may attract regulatory attention. This is the "Icarus Wings" dilemma of stablecoins.

Currently, the stablecoin industry presents a "one super and many strong" pattern. Centralized stablecoins like USDT and USDC dominate the market, while over a hundred other stablecoins are in a catch-up position. Functionally, most small stablecoins actually only provide similar functions to broad currencies, making it difficult for them to become true universal currencies.

In the field of algorithmic stablecoins, projects like FRAX and DAI, despite their innovations, still cannot completely escape centralization risks. New entrants such as Curve's CrvUSD and Aave's GHO face the same challenges. True decentralized stablecoins like Liquity's LUSD and Inverse Finance's DOLA, while designed to be more decentralized, still need to improve in terms of scale and stability.

Overall, the decentralized stablecoin sector is still in its early stages of development, filled with opportunities and challenges. Although currently no project can form a monopoly advantage, there is still potential for breakthroughs in the future with technological advancements and increasing market demand. Against the backdrop of increasingly stringent centralized regulation, the importance of decentralized stablecoins will become more prominent. Those who can find a balance between decentralization, security, and efficiency may become the winners of the future.