There are Three Categories of Stablecoins
- FDIC Dollar deposit collateralized with centralized issuers: e.g. USDC from Circle, USDPax from Paxos, & GUSD from Paxos
- Over-collateralized with ETH (and other crypto) with a decentralizing issuer: e.g. Dai from MakerDAO
- Algorithmic and under-collateralized with decentralizing issuers: e.g. Frax or the now defunct UST from Luna
We See A Fourth Category Emerging
Real world asset backed stablecoins (read our most recent MakerDAO proposal)