Yield-Bearing Stablecoins Continue to Rise

In the midst of the rising popularity of yield-bearing stablecoins—such as those developed by Blast, Ethena, Mountain Protocol, Paxos, and Gyroscope's recently launched “savings gyd” (SGYD)—a new player has entered the market.

A new yield-bearing stablecoin, DEUSD, has been introduced by the modular DPoS network Elixir, offering holders the opportunity to earn returns from the crypto asset.

According to data from CoinGecko, DEUSD's market value has experienced a substantial 12,071% surge within 24 hours, rising from $952,443 to $115.92 million. This rapid growth highlights the growing demand for yield-bearing, dollar-pegged assets in the crypto market.

Yield-bearing stablecoins have gained significant traction recently, with Blast, Ethena, Mountain Protocol, Paxos, and Gyroscope launching their own iterations of the concept.

Now, with the entry of DEUSD, which is designed to offer higher decentralization and less basis exposure compared to its competitors, the market is witnessing the expansion of this class of crypto assets.

However, it's important to note the risks associated with yield-bearing stablecoins, as evidenced by the collapse of Terra's UST and the subsequent failure of the Anchor protocol, which offered high yields to stablecoin holders.