Introduction
Stablecoins are an integral part of crypto, with a total market capitalization of $124B. Despite the increasing adoption of DeFi, the majority of the stablecoin market is held by centralized stablecoins such as USDT and USDC.
Decentralized stablecoins are the earliest use case of DeFi. However, users increasingly opt for centralized stables like USDC and USDT due to their convenience, scalability, and adoption on CEXs. As a comparison, the top 5 centralized stablecoins hold 93.24% of the market share, and the top 5 decentralized stablecoins only account for 4.69%. Decentralized applications are only as censorship-resistant as the money that flows through them.
With a seeming lack of growth over the past year, decentralized stables are making a resurgence. Maker continues to expand the scope of DAI, while Aave and Curve have launched stablecoin ventures of their own. Will these stablecoins tip the scales back in favor of dece