StableCoin

Food delivery platform DoorDash is set to implement a stablecoin payment system, utilizing blockchain technology to improve settlement efficiency and lower costs. This article examines the partnership model and its potential implications for the payments industry.

PayPal launched PYUSD with the primary goal of expanding digital payment infrastructure and securing a leading position in the digital dollar payments market as stablecoins rapidly evolve. By issuing a stablecoin backed by U.S. dollar reserves, PayPal enhances cross-border payment efficiency and bridges traditional payment networks with the blockchain financial ecosystem. PYUSD is a key part of PayPal’s digital finance strategy; its introduction not only reinforces PayPal’s competitiveness in the global payment marketplace but also signals the accelerated integration of stablecoins into mainstream payment systems.

PayPal USD (PYUSD) is a US dollar stablecoin introduced by PayPal, issued by Paxos Trust Company, and supported by US dollar deposits and short-term US Treasury bonds to achieve a 1:1 peg with the dollar. Built on the Ethereum ERC-20 network, PYUSD enables payments, transfers, and digital asset settlements. As a significant step by a traditional payments leader into blockchain finance, PYUSD not only expands the application potential of stablecoins in payment use cases, but also drives the integration of stablecoins into the broader mainstream financial system.

PYUSD, USDT, and USDC are the leading U.S. dollar stablecoins in the current market. Each maintains price stability by being pegged to the U.S. dollar, yet they show clear distinctions in their issuers, reserve mechanisms, regulatory compliance, and use cases. USDT offers the highest market liquidity and trading volume, USDC is recognized for its transparency and robust regulatory oversight, and PYUSD, backed by PayPal’s payment ecosystem, demonstrates strong potential in payment applications.

USD.AI generates yield primarily through AI infrastructure lending by providing financing to GPU operators and compute infrastructure providers and collecting loan interest. These returns are distributed to sUSDai holders, while the governance token CHIP manages interest rates and risk parameters. This model creates an on-chain yield system backed by AI compute financing, allowing real-world infrastructure revenue to become a sustainable source of DeFi yield.

CHIP is the core governance token of the USD.AI protocol, designed to coordinate yield distribution, loan interest rate adjustments, risk management, and ecosystem incentives. Through CHIP, USD.AI aligns AI infrastructure financing returns with protocol governance, enabling token holders to participate in parameter decisions and share in the protocol’s value growth. This creates a governance-driven, long-term incentive system.

USD.AI enables AI infrastructure financing by using GPUs and other compute assets as collateral within an on-chain lending and yield distribution system. Users deposit stablecoins to mint USDai, while the underlying capital is deployed into GPU-backed loans that generate returns. These returns are distributed to sUSDai holders, effectively transforming AI compute assets into yield-generating on-chain credit instruments and forming a DeFi credit market tailored to AI infrastructure.

USD.AI is a yield-bearing synthetic dollar protocol focused on financing AI infrastructure. By combining stablecoins with GPU-backed lending, it creates a dual-token system consisting of USDai (the stable layer) and sUSDai (the yield layer). The governance token CHIP coordinates interest rates, risk parameters, and yield distribution, enabling the financialization and liquidity expansion of physical AI compute assets.

Reserve Protocol and MakerDAO are both designed to create decentralized stablecoins, but they rely on different stabilization mechanisms. MakerDAO issues DAI through user-level over-collateralization, while Reserve Protocol backs RTokens with asset baskets and introduces an RSR staking layer as a risk buffer. MakerDAO focuses on a single stablecoin model, whereas Reserve Protocol offers a customizable framework for multiple stablecoins. This distinction makes MakerDAO better suited as a general-purpose stablecoin protocol, while Reserve Protocol functions more as a modular stablecoin infrastructure.

RSR is the native utility token of Reserve Protocol, primarily used for governance voting, risk buffering, and staking rewards distribution. RSR holders can participate in protocol governance and stake their tokens to provide risk protection for RTokens. When collateral value declines and reserves become insufficient, the protocol sells staked RSR to replenish reserves, ensuring the solvency of the stablecoin system.

Reserve Protocol’s stablecoins, known as RTokens, are backed by a basket of on-chain assets and maintained through over-collateralization and an RSR staking mechanism. When users deposit collateral into the protocol, it mints a corresponding amount of RTokens based on predefined rules. If the value of the collateral declines, the RSR staking layer absorbs losses to preserve system solvency. This design allows Reserve Protocol to create asset-backed stablecoins while supporting flexible configurations for different use cases.

Reserve Protocol is a decentralized system for creating and managing asset-backed stablecoins. It issues stablecoins supported by multiple on-chain assets and maintains system stability through governance and risk-buffer mechanisms. Its native token, RSR, serves roles in governance, staking, and absorbing risk.

Circle has introduced a new USDC Bridge interface, combining established cross-chain technology to streamline and clarify the process of stablecoin transfers. This article examines how it works, the supported chains, and enhancements to the user experience.

Terra Classic (LUNC) is a blockchain protocol and token developed to support algorithmic stablecoin systems and on-chain payment networks. Its fundamental mechanism relies on a supply and demand adjustment model between stablecoins and native tokens. As DeFi and stablecoin demand increased, Terra Classic saw broad adoption across on-chain payment, trade, and asset issuance applications.

Ethena (ENA) is the governance token of the Ethena protocol, supporting sENA staking, ecosystem incentives, and risk governance. This article explains ENA’s utility, allocation structure, incentive model, and its relationship with the USDe ecosystem.