Stablecoins supported by nYUSD

Supported Stablecoins
It is important to understand that nYUSD is only as strong as the stablecoins that are backing it. Any loss to the underlying assets will cause a similar loss to the value of nYUSD.
Currently, nYUSD supports the following Centralized and Decentralized stablecoins:
  • DAI
  • USDC
  • USDT
  • UST
  • TUSD
  • BUSD
  • USDP
  • FEI
  • USDN
  • FRAX,
  • HUSD)
None of these stablecoins are perfect, but we selected them because of their widespread usage. While these stablecoins have lost their USD peg on multiple occasions, they have demonstrated resiliency in eventually getting back to their 1 USD targets.
It is important to note that all these stablecoins introduce non-trivial counter-party risk. Tether, in particular, has had well-documented banking troubles and regulatory challenges. In addition, both USDT and USDC have backdoors that grant their issuers the power to freeze money in their holder's wallets. While DAI does not have any direct backdoors, it's assets can also be negatively impacted since USDC is accepted as collateral for minting DAI.
Despite these concerns, there are already billions of dollars betting on the security of these stablecoins. It is possible that additional stablecoins will be added to the protocol over time. Support may also be removed if any of these stablecoins prove to be too unreliable or put nYUSD holders funds in jeopardy.