We need better stablecoins

Stablecoins is one of the few things in crypto that has found product-market-fit. However, USDT and USDC are centralized stablecoins that represents too much systematic risks for the whole ecosystem. We need better decentralised stablecoins.

Earlier this year, I was really looking forward to Liquity’s original v2 design proposal, one that could potentially “solve the stablecoin trilemma” . But it became apparent that designing a delta-neutral stablecoin aligned with their core philosophy—one that is fully decentralized, backed by ETH / a basket of staked ETH, with immutable contracts— was overly ambitious. UXD attempted something similar on Solana, but depending on on-chain perps (Mango Markets) for open interest was unreliable. It just doesn't really work. At the end, Liquity reverted to an improved CDP design for v2, which is understandable but, as it's likely the best that CDP designs can achieve as of this moment.

Hopefully can we see less Liquity or DAI forks in 2025, and more innovation to challenge USDT/C.

Projects / areas / things Im looking forward to:
- f(x) Protocol v2
- Better decentralized oracles i.e. Redstone
- More decentralised stablecoins on Solana
- How Ethena reacts during the bear

Personally, I am exploring how stablecoins could benefit from ZK and what we are building at Lita.