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Stability currency report: DAI supply breaks 1 billion, USDC helps Venezuela

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The market value of the main stabilization currency in circulation reached $25.25 billion, up $2.54 billion or 14.1 percent in the past month.

Article title: Cryptocurrency Stability Report 22: Stability Currency's Cover and Face -- DAI Supply exceeds 1 billion, USDC helps Venezuela

Original article by MYKEY Researcher & NBSP; Yao Xiang

In order to help cryptocurrency market participants keep updated on the development status of stable currency, we launched MYKEY Stability Currency Report to share our interpretation of the development status of stable currency and analysis of its development trend. We look forward to maintaining exchanges with our peers to jointly explore the development prospects of the stable currency. Suggestions are welcome.

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- The market value of the main stabilization currency in circulation reached $25.25 billion, up $2.54 billion or 14.1 percent in the past month.

- In the past month, the circulation of USDT, USDC, DAI and TUSD increased by 2.414 billion, 33 million, 124 million and 52 million respectively; The remaining stability coins in circulation fell slightly.

-DAI circulation exceeds US $1 billion; USDC circulation exceeded $3 billion.

- Stabilization currency continues to go out of circulation. Circle uses USDC to assist Venezuelan medical workers.

-Libra could appear as soon as January 2021.

I. Overview of stability currency data

In the past month (November 1, 2020 - November 30, 2020, the same below), there has been a significant increase in the data for each stabilisation currency.

Market flow

Source: MYKEY, CoinMarketCap, Coin Metrics

Currently, the market value of the main stabilization currency in circulation has reached $25.25 billion, up $2.54 billion in the past month.

Source: MYKEY, Coin Metrics

The main increase came from Tether. Tether issued 2.413 billion additional shares, specifically Ethereum 1.313 billion, wave field 1.100 billion. The USDC increased its circulation by 33 million, passing the $3 billion mark on November 30. The circulation of TUSD increased by 52 million, and that of DAI increased by 124 million, breaking through the $1 billion mark. PAX, BUSD, HUSD and GUSD decreased by 26 million, 18 million, 36 million and 1.41 million dollars, respectively.

Number of active addresses

Source: MYKEY, Coin Metrics

The average daily active address of the main stabilisation currency rose 3.73 per cent last month.

Number of transactions on the 24-hour chain

Source: MYKEY, Coin Metrics

The average daily number of transactions in the main stabilisation currency was up 0.98 per cent from the previous month. The USDC saw a significant increase of 44.7%, from an average of 33,400 to 48,300 a day.

Turnover on the chain 24 hours a day

Source: MYKEY, Coin Metrics

The average daily turnover of major stabilising currencies increased by us $604 million or 13.97%. October 26 Finance was hacked to steal $34m and there were big swings in transactions (the peaks in the picture). After removing the influence of the day's data, the increase can be revised to 37.97%.

Second, the stability currency is developing vigorously

The whole stability currency ecological prosperity and development. Capital volume is rising steadily, and DAI for decentralized stabilization has reached the milestone of US $1 billion. Financial services are improving, and the USDC program offers a deposit plan with a maximum annualized yield of 10.75%. A benchmarking product is ready for release in January 2021 - Libra.

DAI supplies exceed $1 billion

On November 13, 2020, DAI supply exceeded $1 billion, just 71 days after it exceeded $500 million. The rapid growth of data, on the one hand, from the demand side, liquidity mining and rising market trend of DAI demand is increasing; On the other hand, it also comes from the supply side. The debt ceiling of ETH-A has been raised to $490 million, while the debt ceiling of USDC-A has also reached $485 million, and the utilization rate has exceeded 80%. The USDC locked in Maker's agreement has accounted for 13% of the total SUPPLY of USDC. In contrast, the contribution of new collateral to DAI generation is limited. Since October, the total contribution of new collateral to DAI, including COMP, LRC, LINK, BAL, YFI and GUSD, is $26.3 million, accounting for 2.5% of the total, and only 0.5% except YFI. (Source: https://daistats.com)

Circle announced high-yield savings plans of up to 10.75 per cent

On November 5, 2020, Circle announced on its official twitter account that it will soon offer USDC current and fixed savings plans. According to the official website, the current interest rate is 8.5 percent. There are four types of regular plans, namely 1-month, 3-month, 6-month and 1-year. The interest rate ranges from 9.5 percent to 10.75 percent. Circle will partner with Genesis Global Capital on the savings product, which proceeds from lending dollars to institutional counterparties willing to pay interest.

At present, the savings product has not been officially launched. Users can fill in the information and apply to join the waiting list.

The Financial Times says Libra can appear as early as January 2021

According to an article published by the Financial Times on 27 November 2020, "Libra", a Facebook-led stability coin project, is likely to be launched in January 2021 at the earliest. Initially, only one stabilisation currency will be launched with full collateral in us dollars, but other currencies and combinations will be launched at a later date, according to people involved.

The exact launch date for Libra will depend on when the project is approved by FINMA, the Swiss financial Markets authority, to operate a payment service, but it could be as early as January next year, according to three sources. FINMA says it will not comment on the Libra application.

Three, stable currency to speed up the rhythm of the circle

The accelerated emergence of the stability currency has not only attracted the attention of more national or international regulators, but also gradually expanded the application scenario. In November, Circle announced that it was using the USDC to help medical workers in Venezuela, showing that the use of stabilisers goes beyond the cryptographic world. In October, after the European Commission, the G20 Joint Financial Stability Board and the INTERNATIONAL Monetary Fund successively published their regulatory reports on the stability currency, the UK Treasury said it would formulate the regulatory framework for the stability currency, and the Bank for International Settlements (BIS) also published its regulatory report on the stability currency.

Circle uses USDC to assist Venezuelan health care workers

In November, the USDC's supply reached $3 billion, and its use is gradually being integrated into the real world. Circle works with local governments and financial platform AirTM to distribute funds to COVID-19 health care workers in South America through the USDC, according to the company's website.

The Treasury will set the regulatory framework for the stability currency

In a Statement issued by the UK Treasury on November 9, UK Chancellor of the Exchequer Patrick Sunnak said the government's approach to financial services would be guided by the most productive and innovative industries after the UK leaves the EU. The UK's financial sector should "lead the global dialogue on new technologies such as stabilisers and central banks' digital currencies", which would cement the UK's leading position in fintech.

New technologies such as stabilizers could change the way people store and trade currencies, making it cheaper and easier to make payments, the statement said. In order to exploit the potential value of the stabilisation currency while managing risks to consumers and financial stability, the government will propose regulatory measures for the relevant stabilisation currency schemes to ensure that they meet minimum requirements for payment methods.

The Bank for International Settlements (BIS) issues a stabilization report detailing risks, opportunities and regulation

On November 24, the Bank for International Settlements (BIS) released its stabilisation Currency work report, "Stabilisation Currency: Risks, Opportunities and Regulation", which details the potential role of stabilisation currency and what it means for regulation. The report Outlines the market development of existing stabilizers and describes their potential to embed powerful monetary tools in a digital environment, saying that stabilizers are designed to challenge existing digital payment methods for e-commerce, including traditional bank payments, credit cards and electronic wallets. At the same time, stability coins, particularly the Facebook-led Libra project, pose a challenge to the global financial system. The report analyzes and discusses the Libra project and relevant regulatory solutions, and argues that the regulation of the stability currency should be based on the many conveniences that it can provide, rather than being limited to the existing regulatory framework, and that the implementation of "embedded regulation" -- that is, directly embedding regulatory requirements into the implementation of a "global stability currency" system -- could be considered.