Try Quests to earn cryptoStablecoin Landscape on DEX
Q87. Analyse the stablecoin landscape on Sushiswap, identifying the various tokens available and their main metrics (volume, number of swaps, TVL, and other relevant for you). Which one is the most successful? Is it the same at Uniswap?
Introduction:
Stable coins are digital currencies that use a variety of methods to keep their value constant. They are digital currencies designed to bring price stability to digital currencies similar to what we see in strong Fiat currencies, while maintaining the security, speed, and low cost of virtual asset transactions.
Stable coins were originally created to minimize the impact of digital currency price fluctuations on transactions and to act as a bridge for mainstream financial and investment institutions; But now they are trying to make their way into decentralized finance (DFA) and ordinary banking, reducing their payment costs and reducing their pressure.
In this bounty, the Landscape of stablecoin usage on DEX is investigated.
Methodology:
The used metrics and their method of acquiring are shown as:
- Stable coins--> limit maximum deviation of price from 1 USD by abs(max(price-1)) < 0.05
- Swap--> from ethereum.core.ez_dex_swaps
- For buying--> use SYMBOL_OUT
- For selling--> use SYMBOL_IN
- TVL--> use flipside_prod_db.ethereum_core.dim_dex_liquidity_pools
Swap in or selling stable coin analyzed in this part. As shown in the results, the USDC, USDT and DAI are the most used coins for selling on Sushiswap.
Swap out or buying stable coins on Sushiswap presented in this section. Based on the results the most used coin for buying on Sushiswap are USDC, USDT and DAI in this order.
The TVL of stable coins on Sushiswap liquidity pools shown in this figure. Due to this figure, the USDC, DAI and USDT have the highest TVL on Sushiswap pools, respectively.
According to the results related to the application of stable coins on Uniswap:
- The leading coins by TVL on Uniswap liquidity pools are USDC, USDT and FRAX.
- The most used stable coins for buying and selling are USDT, USDC and DAI.