THE COLOR OF MONEY

Summary from the TLDR Crypto newsletter

This article compares the business models of major stablecoins - USDT, USDC, and USDS - through the lens of reserve structure and return on equity. It highlights how full reserve models (like USDC) prioritize liquidity but face profitability challenges, while fractional reserve models (like Tether and Sky) take on more risk for higher returns, suggesting a future where stablecoins serve different roles based on their economic design.