On the surface, YBS appears deceptively simple—a 1:1 dollar peg ensuring enduring security. Yet beneath lies an intricately layered system.

As discussed earlier, the logic of yield-bearing stablecoins (YBS) mimics traditional banking—but only superficially. Critical challenges remain: sourcing user yields, distribution mechanisms, and sustaining long-term viability. While DeFi collapses are routine (see SBF’s imprisonment), incidents like Silicon Valley Bank’s meltdown signal systemic risks demanding Fed intervention.

Profit-seeking is framed as "product thinking" in tech but labeled "speculation" in finance. Arbitrage thrives on price disparities, while long-term volatility necessitates hedging.

Post-computerization, quantitative speculation evolved through three phases:

1. Portfolio Insurance: Diversification to preserve value, quantifying and pricing risk.

2. Leverage (LTCM Era): Amplifying marginal gains through borrowed capital.

3. Credit Default Swaps (CDS): Once risk-management tools, now degenerate gambling.

Today, spatial arbitrage (large price gaps across markets) has vanished. The norm is micropayments, fragmentation, and routine operations—mirrored in Web3 through on-chain MEV and off-CEX arbitrage. Temporal hedging is passé; leverage, extremism, and speculation dominate. "Hedging" itself becomes the endgame, with远期风险 deferred indefinitely.

Against this backdrop, YBS projects face a paradox:

• Low APY/APR? Fails to attract capital and boost TVL.

• Overpromising yields? Inevitably spirals into Ponzi dynamics, exploding at TGE, funding, airdrop farming, or exchange listing.

Hedging is arbitrage in disguise; momentum is inescapable.

(Image: Stablecoin factions. Source: @zuoyeweb3)
Stablecoins bifurcate into three branches:

1. Institutional Networks: Cross-border清算 systems (e.g., JPMorgan’s offerings), supplementing/replacing Visa/SWIFT.

2. TradFi Dominance: USDT-alikes, including fiat-pegged and institutional experiments like USD1.

3. Ethena Challengers: Including Resolv—our focus here.

Markets exhibit "momentum": pumping relentlessly during rallies, probing deeper lows at troughs. YBS epitomizes this. Projects will battle Ethena, driving APYs to unsustainable highs before market consolidation crowns a winner. Eventually,对冲 and arbitrage converge indistinguishably.

(Image: YBS framework. Source: @zuoyeweb3)
After dissecting 100+ YBS projects, we distill a template divided into product mechanics and market expansion.

1. Collateral Assets

   • Mainstream Choice: USD/U.S. Treasuries. Direct replication of MakerDAO’s "buy Treasuries" model is crude. Emerging niches:

     • Helping Web3 projects acquire real-world assets (e.g., SuperState’s USTB for compliant tokenized Treasuries).

     • Bridging Web2 giants (e.g., Ondo’s Kaite Wheeler, ex-BlackRock, forging Wall Street ties).

   • Four Collateral Types:

     • Treasuries/cash (e.g., Sky’s USDS).

     • On-chain blue chips (e.g., Resolv’s BTC/ETH-backed USR—still mostly USDC/T-bills in practice).

     • USDT/USDC-backed (e.g., Level’s lvlUSD).

     • Exotics: Like GAIB’s GPU算力 tokenization—"utility as collateral" for the AI era.

2. Minting Mechanism

   • Most YBS projects claim 1:1 collateralization (unlike MakerDAO’s overcollateralized DAI). Reality often diverges.

   • Non-collateralized models (credit-based) remain fringe this cycle.

3. Yield Sourcing

   • Case Study: Ethena:

     • Delta-neutral ETH spot + perpetual shorts maintain peg; funding rate arbitrage generates yield for sUSDe holders.

     • stETH enhances yield capture.

Core Challenges:

• Reserve Buildup: Unlike DEXs relying on user liquidity, YBS demands deep reserves to inspire trust—favoring VC-backed players.

• Yield Origin: Early movers capture α; laggards compete via capital规模, risking systemic crises.

Post-launch, attracting whales and retail requires balancing yield scalability with sustainability.

1. Pool Proliferation

   • Flywheel: More pools → deeper liquidity → stabler yields → more users.

   • Key Infrastructure:

     • Pendle (YBS’s "Coinbase for yield"), amplified via platforms like Equilibria (Pendle’s "Convex").

     • Morpho’s peer-to-peer lending pools displacing Aave/Curve.

2. Rewards Systems

   • Points Warfare:

     • Deposit longevity (e.g., USDf 6x multipliers).

     • Staking (Falcon USDf 1x).

     • Referrals.

     • Cross-protocol integration (Resolv’s 19 partnerships).

   • Caveat: Points ≠ guaranteed airdrops.

3. Narrative Control

   • Playbooks:

     • KOLs/media (diminishing returns).

     • Real-world endorsements (e.g., "USD1 backed by Trump").

     • Celebrity背书 (Arthur Hayes for Ethena).

4. Obfuscation Tactics

"Less demand, closer to godhood."

YBS’s 1:1 dollar facade belies its Byzantine underpinnings. Deposit-taking and lending are inherently socio-political—East or West. We’ve dissected YBS from the issuer’s lens, but survival odds remain bleak: How many of 100 YBS projects will endure?

On the surface, YBS appears deceptively simple—a 1:1 dollar peg ensuring enduring security. Yet beneath lies an intricately layered system.

As discussed earlier, the logic of yield-bearing stablecoins (YBS) mimics traditional banking—but only superficially. Critical challenges remain: sourcing user yields, distribution mechanisms, and sustaining long-term viability. While DeFi collapses are routine (see SBF’s imprisonment), incidents like Silicon Valley Bank’s meltdown signal systemic risks demanding Fed intervention.

Profit-seeking is framed as "product thinking" in tech but labeled "speculation" in finance. Arbitrage thrives on price disparities, while long-term volatility necessitates hedging.

Post-computerization, quantitative speculation evolved through three phases:

1. Portfolio Insurance: Diversification to preserve value, quantifying and pricing risk.

2. Leverage (LTCM Era): Amplifying marginal gains through borrowed capital.

3. Credit Default Swaps (CDS): Once risk-management tools, now degenerate gambling.

Today, spatial arbitrage (large price gaps across markets) has vanished. The norm is micropayments, fragmentation, and routine operations—mirrored in Web3 through on-chain MEV and off-CEX arbitrage. Temporal hedging is passé; leverage, extremism, and speculation dominate. "Hedging" itself becomes the endgame, with远期风险 deferred indefinitely.

Against this backdrop, YBS projects face a paradox:

• Low APY/APR? Fails to attract capital and boost TVL.

• Overpromising yields? Inevitably spirals into Ponzi dynamics, exploding at TGE, funding, airdrop farming, or exchange listing.

Hedging is arbitrage in disguise; momentum is inescapable.

(Image: Stablecoin factions. Source: @zuoyeweb3)
Stablecoins bifurcate into three branches:

1. Institutional Networks: Cross-border清算 systems (e.g., JPMorgan’s offerings), supplementing/replacing Visa/SWIFT.

2. TradFi Dominance: USDT-alikes, including fiat-pegged and institutional experiments like USD1.

3. Ethena Challengers: Including Resolv—our focus here.

Markets exhibit "momentum": pumping relentlessly during rallies, probing deeper lows at troughs. YBS epitomizes this. Projects will battle Ethena, driving APYs to unsustainable highs before market consolidation crowns a winner. Eventually,对冲 and arbitrage converge indistinguishably.

(Image: YBS framework. Source: @zuoyeweb3)
After dissecting 100+ YBS projects, we distill a template divided into product mechanics and market expansion.

1. Collateral Assets

   • Mainstream Choice: USD/U.S. Treasuries. Direct replication of MakerDAO’s "buy Treasuries" model is crude. Emerging niches:

     • Helping Web3 projects acquire real-world assets (e.g., SuperState’s USTB for compliant tokenized Treasuries).

     • Bridging Web2 giants (e.g., Ondo’s Kaite Wheeler, ex-BlackRock, forging Wall Street ties).

   • Four Collateral Types:

     • Treasuries/cash (e.g., Sky’s USDS).

     • On-chain blue chips (e.g., Resolv’s BTC/ETH-backed USR—still mostly USDC/T-bills in practice).

     • USDT/USDC-backed (e.g., Level’s lvlUSD).

     • Exotics: Like GAIB’s GPU算力 tokenization—"utility as collateral" for the AI era.

2. Minting Mechanism

   • Most YBS projects claim 1:1 collateralization (unlike MakerDAO’s overcollateralized DAI). Reality often diverges.

   • Non-collateralized models (credit-based) remain fringe this cycle.

3. Yield Sourcing

   • Case Study: Ethena:

     • Delta-neutral ETH spot + perpetual shorts maintain peg; funding rate arbitrage generates yield for sUSDe holders.

     • stETH enhances yield capture.

Core Challenges:

• Reserve Buildup: Unlike DEXs relying on user liquidity, YBS demands deep reserves to inspire trust—favoring VC-backed players.

• Yield Origin: Early movers capture α; laggards compete via capital规模, risking systemic crises.

Post-launch, attracting whales and retail requires balancing yield scalability with sustainability.

1. Pool Proliferation

   • Flywheel: More pools → deeper liquidity → stabler yields → more users.

   • Key Infrastructure:

     • Pendle (YBS’s "Coinbase for yield"), amplified via platforms like Equilibria (Pendle’s "Convex").

     • Morpho’s peer-to-peer lending pools displacing Aave/Curve.

2. Rewards Systems

   • Points Warfare:

     • Deposit longevity (e.g., USDf 6x multipliers).

     • Staking (Falcon USDf 1x).

     • Referrals.

     • Cross-protocol integration (Resolv’s 19 partnerships).

   • Caveat: Points ≠ guaranteed airdrops.

3. Narrative Control

   • Playbooks:

     • KOLs/media (diminishing returns).

     • Real-world endorsements (e.g., "USD1 backed by Trump").

     • Celebrity背书 (Arthur Hayes for Ethena).

4. Obfuscation Tactics

"Less demand, closer to godhood."

YBS’s 1:1 dollar facade belies its Byzantine underpinnings. Deposit-taking and lending are inherently socio-political—East or West. We’ve dissected YBS from the issuer’s lens, but survival odds remain bleak: How many of 100 YBS projects will endure?