The Flipside Stablecoin Recipe 

What are the on-chain metrics that matter most for the success of stablecoins?

In this report, we focus on USDC specifically, and look at its DeFi activity and health in comparison to three other leading stablecoins (USDT, DAI and PAX).

All data visuals were created using Velocity, which is public and free for anyone to create queries.
 

👉 Access Labeled Data (Help us improve! Share any feedback/comments or questions with us on Discord: https://flipsidecrypto.com/discord) 
 

What Metrics Really Matter for Stablecoins?

There are a few important facets to consider when evaluating the health of stablecoins on Ethereum. Here is our take:
 

• Liquidity

  • Is there enough to manage demand? 

  • How is it broken out at a high level?

• Supply

  • Is it active and healthy?

  • Who is using the top stablecoins, where, and how many protocols support them?

• Peg

  • How reliable is the peg? 

• Transaction Fees

  • ​How much are users paying to use the stablecoin?
     

Total Value Locked in DeFi

How much stablecoin supply is staked in known DeFi protocols? An important ingredient in the picture of stablecoin health: the more stablecoins are used in more protocols, the higher this number will grow over time.
 

Access to CSV and API endpoints for this data:                    
https://velocity-app.flipsidecrypto.com/shareable/tvl-ZxRPeY
 

Volume, Active Addresses and Transaction Counts

We break out these three fundamental metrics for on-chain activity into three buckets: DeFi + DEX; CEX; and Other, to observe overall growth in use of stablecoins and to see which categories are spurring that growth.
 

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