DeFi Best Of

Stablecoins in 2021: Which ones to use

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Last year we wrote an article to introduce some of the most used stablecoins nowadays, helping you choose the appropriate stablecoin for your purposes. However, times change quickly and even stablecoins have undergone major changes in a year.

Before presenting the best stablecoins with a brief description, we would like to reiterate that Tether (USDT) is still at risk as it is being pursued by the New York Supreme Court, which has set a deadline of January 15th, 2021 for the delivery of various financial documents. However, this lawsuit has been dragging on for some time, so perhaps this last date might be postponed again. To stay on the safe side, we recommend holding your money on several stablecoins, as there is now a wide choice and many of them have ample liquidity on both CEXs and DEXs.

Stablecoins in 2021 – The most used ones

1) Tether (USDT): It is still the first choice with a marketcap of $24 billion. This marketcap has increased by 20% in the last month alone. However, Tether is often under scrutiny as it is continually accused of not being backed, i.e. not having the same number of physical dollars for each USDT minted. Because of these problems, many people are migrating to other stablecoins such as USDC or DAI. 

2) USD Coin (USDC): The most used stablecoin after Tether which is about to reach $5 billion in capitalization, a huge figure for a stablecoin that very few people knew about last year. USDC is the stablecoin launched by Circle and Coinbase, two very important names on the international scene that could push it to the top of the stablecoin podium.

3) Dai (DAI): Maker’s stablecoin, one of the world’s best-known and most widely used DeFi platforms (consistently ranked number one on DeFiPulse, a list that calculates the total value locked in each DeFi project). At the moment, the marketcap is over one billion dollars (approximately $1.3 billion).

4) Binance USD (BUSD): Launched by Binance, the exchange with the largest trading volumes in the world, it has recently surpassed $1 billion in market capitalization. This is also thanks to the various trading pairs already available on Binance. Who knows whether BUSD will manage to reach the podium of this special ranking. 

5) Paxos Standard (PAX): In fifth place there is PAX, a stablecoin with a $460m marketcap which seems to be fully regulated in the United States. An excellent choice!

Other stablecoins on the rise:

  • 6) Empty Set Dollar (ESD) – 315M
  • 7) TrueUSD (TUSD) – 303M
  • 8) HUSD (HUSD) – 240M
  • 9) sUSD (SUSD) – 228M
  • 10) Neutrino USD (USDN) – 116M
  • 11) Dynamic Set Dollar (DSD) – 101M

There are many other stablecoins but for now we have preferred to mention only those with a marketcap of at least $100M. As you can see, times have changed a lot and USDT is no longer the only option available to hold your funds online without worrying about crypto volatility. 

Even if something were to happen to Tether or some other stablecoin, there are now so many choices that there is no need to worry at all. Most of these stablecoins run on the Ethereum network, so they are transferable like normal ERC20 tokens

We also would like to remind you not to keep your stablecoins idle as you can earn good amounts of money with these funds thanks to the different DeFi projects launched in the last 2-3 years. For example, you can use Curve or Idle.Finance to put your stablecoins to work, earning an annual interest rate that can vary from 1 to 20-30% (variable interest rates that still result in significant earnings). 

chainlink
Chainlink (LINK) $ 21.57
yearn-finance
yearn.finance (YFI) $ 31,400.00
ethlend
Aave [OLD] (LEND) $ 1.93
uniswap
Uniswap (UNI) $ 8.54
havven
Synthetix Network Token (SNX) $ 14.11
uma
UMA (UMA) $ 12.35
compound-governance-token
Compound (COMP) $ 202.52
maker
Maker (MKR) $ 1,331.33
wrapped-nxm
Wrapped NXM (WNXM) $ 46.08
0x
0x (ZRX) $ 0.510620
loopring
Loopring (LRC) $ 0.410340
republic-protocol
REN (REN) $ 0.659898
kyber-network
Kyber Network (KNC) $ 1.45
numeraire
Numeraire (NMR) $ 27.41
band-protocol
Band Protocol (BAND) $ 8.80
terra-luna
Terra (LUNA) $ 0.851205
yfii-finance
DFI.money (YFII) $ 1,826.91
sushi
Sushi (SUSHI) $ 6.66
balancer
Balancer (BAL) $ 20.12
thorchain
THORChain (RUNE) $ 2.11
reserve-rights-token
Reserve Rights Token (RSR) $ 0.039212
ampleforth
Ampleforth (AMPL) $ 0.943975
nest
Nest Protocol (NEST) $ 0.030153
serum
Serum (SRM) $ 1.67
keep-network
Keep Network (KEEP) $ 0.288181
augur
Augur (REP) $ 19.21
curve-dao-token
Curve DAO Token (CRV) $ 1.97
kava
Kava.io (KAVA) $ 2.05
bancor
Bancor Network Token (BNT) $ 1.68
just
JUST (JST) $ 0.026973
gnosis
Gnosis (GNO) $ 106.81
force-protocol
ForTube (FOR) $ 0.016261
cream-2
Cream (CREAM) $ 156.54
melon
Melon (MLN) $ 44.61
tellor
Tellor (TRB) $ 26.43
akropolis
Akropolis (AKRO) $ 0.014762
aurora-dao
IDEX (IDEX) $ 0.034401
nectar-token
Nectar (NEC) $ 0.109244
bzx-protocol
bZx Protocol (BZRX) $ 0.269065
airswap
AirSwap (AST) $ 0.112984
switcheo
Switcheo (SWTH) $ 0.023032
orion-protocol
Orion Protocol (ORN) $ 2.70
dforce-token
dForce Token (DF) $ 0.145520
meta
Meta (MTA) $ 2.42
pnetwork
pNetwork (PNT) $ 0.431371