In the summer of 2022, the collective collapse of algorithmic stablecoins and the failure of projects like UST served as a cold shower that woke up the entire crypto industry. Those once-popular mathematical models, promising to create value out of nothing, completely collapsed at the most stable moments when they were needed the most. By 2025, we are witnessing a completely different scene—a genuine transformation that returns to the core essence of finance.

How important are stablecoins to the crypto ecosystem? They are like blood. Good blood quality ensures the healthy operation of the entire ecosystem. The failure of those algorithmic stablecoins, in simple terms, was an attempt to sustain the system with hollow promises. Once growth slows down, the entire mechanism enters a death spiral, and nothing can save it. The new generation of stablecoin solutions has completely changed the approach, no longer relying on stories to attract users, but instead establishing real, transparent collateral mechanisms.

Take the current over-collateralization model, for example. The core idea is quite simple—each stablecoin issued must be backed by real assets worth more than 150%. These assets can be mainstream cryptocurrencies like ETH, BNB, or RWA( real-world assets). In comparison, this system is like a transparent bank built on the blockchain, completely free from the opaque operations of traditional finance. You can verify each collateral at any time, with data open and transparent.

Conceptually, it’s like giving you not just a lifebuoy when sailing, but tying you directly to a safe filled with gold—no matter how big the waves, you won’t sink.