This whole idea that stablecoins are somehow more profitable than lending markets is one of the biggest misunderstandings in Defi.
Both lending markets and stablecoins borrow from Alice to lend to Bob and take a spread in the process.
It's true that stablecoins have an implied convenience yield from being globally transferable etc. but this is reserved for stablecoin with deep global liquidity and acceptance network, like USDT and USDC. Everyone else competes for the same scarce capital pool and increasingly need to pay the same interest to lenders.
For a new stablecoin entering the market, there's really only a two advantages that matter - superior distribution (which lets you borrow lower) and superior ALM (which lends you lend out higher). Which one do AAVE & FLUID have?
Reading @lemiscate post on aave (recommend to go read) makes me think @0xfluid would be very well positioned to issue their stablecoin.
As a lending protocol and the deepest stablecoin DEX on Ethereum it would be uniquely positioned to ensure peg strength.
Wen fluidUSD?
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