$UST, TerraUSD is a decentralized algorithmic stablecoin running on Terra blockchain (now available on other chain) that attempts to maintain a value of US$1.00. Unlike centralized stablecoins like $USDC or $USDT, $UST isn't backed by US dollars or any commodity in a their balance sheet. Instead, in order to mint 1 TerraUSD, US$1.00 worth of TerraUSD's reserve asset (LUNA) must be burned.

Currently, top 10 addresses holding $UST are;

$DAI is created from an overcollateralized loan and repayment process facilitated by MakerDAO's smart contracts in the form of a decentralized application. Users who deposit Ether (or other cryptocurrencies accepted as collateral) are able to borrow against the value of their deposits and receive newly generated $DAI. The top 20 addresses holding $DAI currently are as follows;

We can see that Anchor, the main protocol on Terra holding largest $UST to its balance. Anchor is a savings protocol where users can earn 20% APY on $UST deposited which has attracted many crypto users including myself. Other notable large holders include Community Pool where a portion of transaction fees went to, and this account controlled by TFL. Wormhole and Terra Bridge also hold significant amount of $UST. DEX liquidity pool like Astroport LP for LUNA-UST and ANC-UST holding large sum of $UST available.

For $DAI, Curve 3pool currently holding the most $DAI. Bridges like Avalanche Bridge, Anyswap Bridge, Polygon Bridge holding a lot of total $DAI available. The rest are in balance of DeFi apps such as AAVE, Compound, Yearn Finance and Balancer. CEXes such as Binance, Crypto.com also has significant amount to their name.

Stablecoins are an important type of cryptoassets as it is used as a denom to other cryptocurrencies. We can say that stablecoins are what interconnecting many assets in crypto space. Other than that, it is the gateway that connects crypto and financial market and it is used as on-ramp currency. Since end of January this year, $UST has overtook $DAI in term of marketcap; ie supply available in the market.

In conclusion, $UST and $DAI are two very different type of stablecoins and different people favors different stablecoins. However, with the risk of KYC regulation and decentralization, $UST seems to have more favors in this decentralized finance.