Unpacking the $129 Billion Stablecoin Market: The Rise of Non-USD Stablecoins

The Current Landscape of Stablecoins

The stablecoin market is experiencing a sensational growth spurt—worth a jaw-dropping $129 billion and filled with an array of unique projects. But, let’s be real: while the marketplace resembles a wild buffet, the top five projects dominate the industry like a massive bouncer standing over a queue. Collectively, they represent a staggering 94% of the total market cap, and if you think that’s impressive, they hold an eye-watering 99% share of trading volume. Spoiler alert: a high percentage of these are pegged to none other than the almighty U.S. dollar.

Currency Exchange Risks: The Elephant in the Room

Now, if you don’t call the U.S. home, it appears that every time you enter the stablecoin buffet, you might be dodging some sneaky currency exchange risks. Non-USD stablecoins seem to be the untouched veggies at this buffet—super nutritious but struggling for a seat at the table. Interestingly, these non-USD options have the potential to act as an on-ramp, ushering billions of new users into the wonderfully chaotic world of decentralized finance (DeFi). But here’s the kicker: they just can’t seem to break the mold and achieve the network effect necessary for widespread adoption!

The Challenges at Hand

But it’s not all sunshine and roses for non-USD stablecoins. They battle three daunting foes: price stability, liquidity, and scalability. It’s a classic scenario of the chicken and the egg—without liquid markets, they can’t thrive, and without viability, they can’t build those markets. As a result, launching and scaling these alternatives is like trying to haul a wet noodle up a mountain—exceedingly tricky.

Summoning Help from Forex

In a surprising twist, experts in this space are looking to the Forex market for salvation. Enter the Jarvis Network. Armed with the Synthereum protocol, they’re on a mission to bring innovative solutions to the table for non-USD stablecoins and clear up the liquidity conundrum once and for all.

Synthereum: The Game Changer

Synthereum takes the creative route by utilizing smart contracts to launch synthetic stablecoins—dubbed jFIAT—while fostering an on-chain Forex market. With Chainlink Price Feeds churning out real-time currency exchange rates, Synthereum allows seamless trades without the pesky slippage we all dread. Say goodbye to the wild price fluctuations!

A Word from the Inside

“Eventually, our protocol enabling liquid and stable stablecoins with an on-chain Forex will be the back-end technology underpinning most wallets whose mission is to ease user experience.”

Accessing Liquidity with Jarvis Exchange

With Jarvis Exchange, users can effectively navigate Forex swaps on Ethereum and Polygon without worrying about price impacts. Users utilize Synthereum’s unique issuance mechanism, minting jFIAT using USDC or burning jFIAT to redeem USDC at oracle prices. Imagine this: you trade jFIAT for USDC, and without the slippage monster sneaking up on you, you can exchange your jFIAT seamlessly for virtually any token.

How It Works: A Step-by-Step

1. Start with jFIAT (let’s say jEUR).
2. Swap jEUR for USDC on the Synthereum protocol.
3. In the same transaction, use USDC to buy your desired crypto (like ETH) on any external AMM.

This smooth process ensures you’re harnessing the full potential of on-chain liquidity—now that’s an exchange worth talking about!