The stablecoin ecosystem will be more mature and diversified. For most users, fiat-staking stablecoins are still the first choice for their simplicity and high liquidity. Users who pursue higher decentralization and transparency can choose to crypto assets to pledge stablecoins. Mixed and algorithmic stablecoins represent the industry's exploration direction, and you must fully understand their high-risk characteristics before participating. With the gradual implementation of CBDC, it will also play an important role in specific scenarios. Which stablecoin to choose ultimately depends on your comprehensive consideration of security, degree of decentralization, capital efficiency, and risk.

1. Stablecoin Security Trading Network

• Binance:
• OK:
• Huobi:
• Gate.io:

2. Fiat currency mortgage stablecoin

This is the most common and intuitive type of stablecoin. Their value remains an 1:1 anchor relationship with traditional fiat currencies such as the US dollar, and the issuer will hold a fiat currency reserve of equal value as support.

Working principle: The user deposits one unit of fiat currency, the issuer mints and distributes one unit of stablecoin. On the contrary, when the user redeems, the stablecoin is destroyed and fiat currency is returned.

Representative items: USDT (Tether), USDC (USD Coin).

Advantages: The mechanism is simple and easy to understand, with high value stability, good liquidity, and is widely accepted.

Risk warning: Relying on centralized institutions requires trusting the issuer to indeed hold full reserves. The transparency of reserves and audit status are key.

Common APPs: Almost all mainstream trading platforms (such as Coinbase, OKX) and digital currency (such as Trust Wallet, MetaMask) support it.

3. Crypto Asset Mortgage Stable Coins

Such stablecoins do not rely on traditional financial systems, but are generated by staking other crypto assets such as Ethereum. To cope with fluctuations in collateral prices, over-collateral is usually required.

How it works: Users lock crypto assets worth more than $1 (such as $1.5 ETH) into smart contracts, thereby lending $1 of stablecoins.

Representative Project: DAI (MakerDAO).

Advantages: High degree of decentralization, transparent assets, all operations can be checked on the chain, and there is no need to trust third-party institutions.

Risk warning: The mechanism is relatively complex. When the value of collateral falls sharply, you may face liquidation risks. Low capital efficiency.

Common APP: It can be generated on the MakerDAO official platform and used in decentralized applications such as Aave and Compound.

4. Commodity mortgage stablecoin

The value of this type of stablecoins is linked to physical commodities such as gold and oil. Each token represents a certain amount of physical goods ownership.

How it works: The issuer purchases and stores physical goods (such as gold) and then issues digital tokens that represent ownership of those goods.

Representative items: PAXG (Paxos Gold), each token represents a troy ounce of gold.

Advantages: Value is anchored on a historic store of value assets, providing diversity to the portfolio.

Risk warning: Its value stability is relative to the commodity, not a certain fiat currency. It is also necessary to trust the centralized institutions that custody physical assets.

Common APP: It can be obtained on the Paxos platform or some large trading platforms.

5. Algorithm stablecoin

This is a very innovative but riskiest stablecoin. It does not rely on any collateral, but automatically adjusts the supply in the market through a set of algorithms and smart contracts to maintain price stability.

How it works: When the price of a stablecoin is higher than 1 USD, the system issues additional prices to reduce the price. When the price is below $1, the system reduces supply through repurchase, destruction or other incentives to increase the price.

Representative projects: There have been projects such as UST, but failed due to their vulnerability. The market is currently very cautious about such projects.

Advantages: Decentralization in the true sense, extremely high capital efficiency.

Risk warning: It is extremely susceptible to extreme market sentiment, and a "death spiral" may occur, resulting in an instant collapse of value, which is extremely high.

Common APPs: They mainly exist in some specific decentralized financial protocols, and users need to have extremely high risk awareness.

6. Mixed stablecoins

Hybrid stablecoins try to combine the advantages of different models, such as partly collateralized by fiat currency or crypto assets and partly regulated by algorithms to seek a balance between stability, decentralization and capital efficiency.

Working principle: Combines two mechanisms: mortgage and algorithm. For example, a stablecoin may be supported by 80% USDC and 20% governance tokens through algorithms.

Representative Project: FRAX.

Advantages: It is more resilient than pure algorithm stablecoins and has higher capital efficiency than pure collateral stablecoins.

Risk warning: The complexity of the model may hide new risks and it still needs to be paid attention to its performance in stressful environments.

Common APPs: Frax Finance protocol, and mainstream decentralized trading platforms.

The above is the detailed content of Detailed analysis of six different stablecoin types in 2025 (with APP included). For more information, please follow other related articles on the PHP Chinese website!