Try Quests to earn cryptoStablecoin Popularity
Stablecoin usage on Solana is exploding. The USDT now has the largest market cap in the Solana network . after that USDC and UST. In this article, we try to understand why UST seen more adoption in the Solana ecosystem Since the beginning of this year 2022.
Comparing the accumulation chart of the 3 Stables in Solana, we find that the UST has grown more than the rest of the Stables since the beginning of this year.
The bottom cumulative chart shows us that UST has grown almost 50X in the accumulation model from the beginning of January to the end, which is a significant amount compared to the other two stable coins. The USDC has almost doubled and the USDT has grown 10X.
But what could be the reason for this increase in UST transactions?
The original stablecoin is the infamous Tether USDT, which was created in October 2014. Even though widely adopted, for many Tether represents a dark shadow over the crypto market due to the constant fear of regulation and legal action. As a centralized actor it represents a point of attack for governments and regulators who does not favor DeFi and cryptocurrencies.
Other major actors in the stablecoin space have arrived and are taking a large share of the market, in particular USDC created by Center Consortium is ever growing in popularity. But more or less the same issues remain – a central point of attack, which potentially breaks the whole of DeFi.
So the crypto and DEFI space needed a decentralized and scalable Stabil Coin. Which is UST.
UST has been used on Solana for several months already, pioneered by Saber and Mercurial Finance, who both offered stable pools from the start.
UST has gained traction and at the time of writing the following protocols utilize UST:
- Saber - Saber provides a few pools for UST, giving dual yields.
- Mercurial Finance - Mercurial provides a 3Pool giving a good APY in its native token.
- Sunny - Sunny provides a good APY on UST stable pool.
- Port - Port allows you to lend and borrow UST, giving dual yield in PORT and UST on your deposits.
- Apricot - Apricot allows you to lend and borrow UST giving dual yield in APT and UST on your deposits. Apricot also offers LP Farming of USTw-USDC with leverage.
- Aldrin - Aldrin provides the option to trade with UST and offers a mSOL-UST pool that gives a good APR.
- Jupiter - Jupiter is a swap aggregator and doesn´t provide any yield-bearing products but provides swaps between UST and a host of other tokens.
Looking at the number of transactions related to these 3 stable coins, we find that since early 2022, the number of UST transactions has grown significantly.
Decentralization is one of the fundamental principles of the crypto world. However, being centralized also has its own advantages. But without Decentralization cryptocurrency does not make sense. There are also several projects in Solana that seek to create and develop stablecoins, but this is very difficult process and time consuming. UST is well increasing its adaptation in the Solana blockchain. This increase in adaptation will greatly help the expansion of the Terra network and its UST stablecoin , and we will see an increase in this adaption in the Solana network in the future.
Also Earlier this year Invictus DAO has partnered with Terraform Labs, the creator of the Terra blockchain, to offer UST bonds on their platform.