Everyone’s Coming After Tether’s Pie: New Stablecoins and How They Stand Out

Transcript

Hi everyone, my name is Gaspar Paluzi. I'm one of the co-founder of Spectra protocol which is a yield tokenization protocol. We're working at the forefront with a stable coin issue in some use cases that I'm going to present later. Um but first mostly today what I really what I want to introduce and to introduce and to highlight is basically the evolution of the stable coin landscape. Um mainly with eelbeing stable guns but first um let's admit it right now tar has the whole pie not just that slice it's a big whole bakery um and we are seeing slightly different competitors arriving in this landscape and I'm going to explain why and all.

first to pay respect with you. It's not just big, it's printing. Uh it's actually the most profitable company per employee. Um and as you see like over 1 billion operating profit I think in this quarter already um more than 150 billion market cap is just huge predominant in this sector. So in terms of dominance it's 62%. uh you have a circle USDC just over there as well and then dozen of competitor that are trying to do something different basically they're not just um trying to be payment rails um that's just just a few of them uh for example go from a USD from you have USD

bold USDs but you have a lot of other from FX protocol from rings from resolve really a lot of stable coins especially during the past year we saw a lot new stable coins, but basically they're not trying to be just um just a payment rails. They're trying to say something different, which is what if you were able to do more with stable coins and earn some yield on top of these. Um just to recap a bit where we are two years ago uh do Zilbearing stable coins it was 0.5% of the total amounts in terms of volume um liquidity sorry for stable coins. So basically nothing.

Fast forward two years it's 5%. Still very small uh but we see a clear uptrend. It's now a proper category of its own and it's slowly but surely eating on the pie. That's a 10x improvement in two years. Um from basically a rounding error to a proper category. So what fueled this growth? Well, basically two magic words, yield and composibility. Um you're it's not just holding stable coins, it's holding yieldbearing stable coins that can be plugged in defy and used there like money logos.

Uh the stable watch uh coined the term yield paid out and basically they try to um recmp compute and visualize how much yield was paid to users. Uh so depositors are usually in their stable vaults. So that's something we're going to see later. Um and it's about above 600 million um since basically two years. Uh and we can see it's it's growing quite a lot. Uh currently it's about 2 million daily redistributed to users on a still very small 10 a bit above 10 billion economy.

So what are these yield sources? Um, just to recap what we see here on the on the left, you have the the stable coins. So, really like the the dollar unit that you're exchanging. Then you have the yield component, which is basically the vault or the main um deposit place where you can natively generate yield with your stable coins. This yield can be of different sources. For example, sometimes it's from the own protocol economy like with with a go or with with curve. Sometimes it's stil like uh like taser mainly. um but this time they're actually being redistributed to the users um and sometimes is from defy utilization for example in the level case uh so different yield sources

how they try to compete between themselves well you have a yield bearing basis um and then they are reused into defy into lending markets for example uh on mofu as as collateral they can be used on amm under under wrapping under writing swaps and getting fees on top of the yield bearing composent or on yield tokenization protocol like spectra for example for people to to trade that yield. They are trying to get an edge um over the others through those different use cases and and be more distributed into defy as well.

Um that's also where the magic of fixing comers come. So I won't get too technical but basically with Spectra we produce principal tokens that are fixed uh income instrument. Um and basically what you have is a um a token that represents a predefined value that you can redeem at maturity. So it's basically getting a dollar for less than a dollar. Let's say 95 cents of a dollar and you will get your dollar back in a few months. This unlocks a wide variety of use cases in terms of just metaphor like fixed savings but also um ascolateral and lending markets. um lots of more predictable strategies and basically the

the whole sector is slowly but surely also moving to more uh fixed income instrument and um yeah so so the the the the fixed income component is offering an edge for all those for all those um yield bearing stable coins um between themselves we have saw a huge growth in terms of uh like just stable coins being tokenized into principal tokens that put but as collateral a lot of looping strategy talking to defy managers that's like currently one of the biggest demand that we have uh and this just keeps growing and now in terms of final words uh the question is not

longer like is this going to grow market cap wise um it's mostly are we going to be able to to to distribute the stable coins to the real user to the general users not just the the farmers and the and the the money makers purely in DeFi but more to to the institutional player and um with really much with much predictable yield. Um if if they correct that then it's not just uh desert that they that they're eating. It's the world economy that is going to evolve quite a lot. Um, thank you very much and if you have any question I'm available for this.

[Applause] [Music] [Music] No questions for Mr. Per. Okay. Thanks again. Thank you very much. [Applause] [Music]