USDfi Compared to Other Stablecoins
1. USDfi vs LUSD (Liquity)
LUSD: An overcollateralized stablecoin backed by ETH, with high volatility risk and capital inefficiencies. USDfi: Collateralized 1:1 with liquid assets and gold using carry arbitrage operations; more resilient to market fluctuations.
2. USDfi vs LYBRA
LYBRA: Yield-bearing stablecoin pegged to stETH, exposed to risks from liquid staking derivatives. USDfi: Uses real assets and carry arbitrage for stable, sustainable yields—without relying on staking derivatives.
3. USDfi vs UXD
UXD: Algorithmic stablecoin with delta-neutral hedging, vulnerable to sudden liquidations and inefficiencies during volatile events. USDfi: Uses gold futures hedging and tangible reserves, avoiding liquidation risks.
4. USDfi vs DAI
DAI: Overcollateralized with volatile assets and partially dependent on USDC. USDfi: Backed 1:1 with selected stablecoins and hedged gold—no over-collateralization required, enabling a more efficient structure.
5. USDfi vs RAI
RAI: Non-pegged stablecoin with fluctuating price and automated control mechanisms. USDfi: Clearly pegged to 1 USD, with reserve interventions and self-arbitrage mechanisms to maintain parity.
6. USDfi vs TERRA (UST)
TERRA/UST: Algorithmic stablecoin that collapsed due to unsustainable mechanisms and lack of real reserves. USDfi: Backed by tangible reserves, uses carry arbitrage, and avoids pure algorithmic reliance.
7. USDfi vs USDC
USDC: Centralized stablecoin, subject to government oversight and potential freezes. USDfi: Fully decentralized, trustless, censorship-resistant, and backed by verifiable on-chain reserves.
8. USDfi vs FRAX
FRAX: Semi-algorithmic stablecoin, vulnerable to instability cycles and constant tuning. USDfi: Simple model, real assets, sustainable earnings, and no external intervention needed.
9. USDfi vs ETHENA (USDe)
ETHENA: Backed by delta-neutral strategies on ETH derivatives; innovative but still exposed to crypto volatility and exchange-related risks. USDfi: Integrates physical gold, liquid stablecoins, and hedging with futures—less exposed to crypto volatility, more tied to regulated markets (gold). Comparison Table
LUSD
Overcollateralized ETH
1 USD
High
None
ETH volatility, high capital consumption
LYBRA
stETH
1 USD
Medium
Variable
Exposure to staking derivatives
UXD
Delta-neutral derivatives
1 USD
Medium
Variable
Liquidations in volatile markets
DAI
Multiple collateral
1 USD
Medium-High
Limited
Partial dependency on USDC
RAI
ETH
Floating
High
Variable
Unstable peg, hard to understand
TERRA
Algorithmic
Collapsed
High (former)
None
Algorithmic collapse
USDC
USD fiat
1 USD
Centralized
None
Fund freezing, regulatory risk
FRAX
Semi-algorithmic
1 USD
Medium
Variable
Instability cycles, constant mechanism tuning
ETHENA
Crypto derivatives
1 USD
Medium
High
ETH volatility, exchange-related risks
USDfi
Physical gold, stablecoins
1 USD
Full
Stable
Tech and custodian risk
Conclusion
USDfi isn’t just another stablecoin: it represents the synthesis of what has worked in previous projects—without inheriting their weaknesses. With real-world assets, sophisticated arbitrage mechanisms, and a transparent structure, USDfi is the ideal choice for conscious crypto users seeking stability, sustainable yield, and maximum on-chain freedom.
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