The Stablecoin Trilemma: Why Your “Stable” Dollar is Either Censorable, Opaque, or Too Complex

The stablecoin market was born from a simple need: a safe haven from crypto’s volatility. Yet, in solving for stability, we’ve created a new set of problems. Today’s digital dollars force users into a painful compromise between three flawed models.

The Censorable IOU (USDC/USDT): The largest stablecoins are simply IOUs from centralized companies, fully dependent on the traditional banking system they were meant to improve. Their reserves are held in banks, their assets can be frozen, and their existence is subject to the whims of a single corporate entity. They are not truly crypto assets; they are digital extensions of the old financial system. For a dApp builder, this introduces a massive single point of failure. For an individual, it means your self-custody is an illusion.

The Opaque “Trust Me, Bro” Model (USDT): The market’s most liquid stablecoin operates on a foundation of opacity. Its reserves are a complex, murky mix of assets, and it has historically resisted a full, independent audit. This model is a direct contradiction of the core crypto ethos of “don’t trust, verify”. In the post-LUNA world, this is an unacceptable risk.

The Complex & Burdened Decentralized Model (DAI): As the decentralized predecessor, DAI commands respect, but its user experience is a significant barrier. To mint DAI, a user must take on the complex and high-stakes role of a risk manager, actively monitoring their own Collateralized Debt Position (CDP) to avoid liquidation. This is a powerful tool for DeFi experts but a burden for the average user who simply wants a stable, on-chain dollar.

USPD was designed to solve this trilemma.

It is unstoppable and transparent, with 100% of its reserves held as on-chain stETH, verifiable by anyone, at any time. It has zero exposure to the traditional banking system.
It is stable without the burden. USPD’s key innovation is abstracting the complexity of risk management away from the holder and outsourcing it to professional Stabilizers using their own capital. The user simply mints 1:1 and holds a stable asset, without the personal risk overhead.

We believe you shouldn’t have to choose between sovereignty, transparency, and simplicity. That is why we built USPD.The Unstoppable Dollar of the Decentralized Nation.

Learn more about how USPD works .