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Pharos

How a stablecoin holds its peg

The mechanism a coin uses determines how it survives stress. These explainers map every tracked design: what produces the peg, where it tends to fail, and which Pharos signals fire first when it does.

Active coins tracked

321

Across 7 designs

7 mechanisms

+25 upcoming

+19 frozen

Active coins by mechanism

  • 126Custodial Cash
  • 42Tokenized Treasury
  • 76Crypto CDP
  • 33Hedged Synthetic
  • 6Reflexive / Unbacked
  • 38Credit Fund
  • 0Commodity Claim

Start Here

Collateral paths to read first

Three high-signal explainers for readers comparing off-chain collateral, fund gates, and reflexive peg mechanics.

RWA credit fund stablecoins

Start here for credit-fund collateral, NAV marks, redemption gates, and why off-chain loan books fail differently from T-bills.

Read the explainer

Tokenized Treasury stablecoins

Compare the cleaner short-duration Treasury model before reading credit-fund designs with longer asset and gate risk.

Read the explainer

Algorithmic stablecoins

Use the reflexive failure model as the contrast case for undercollateralized designs and collapse-style case studies.

Read the explainer

At a glance

7 mechanisms
Stablecoin mechanism comparison matrix
MechanismCollateral locationRedemption rightYield sourcePrimary failure modeGovernance dep.Oracle dep.Jurisdiction dep.
Custodial Cash and Cash-EquivalentsOff-chain1:1—Banking-rail freezeLow—High
Tokenized TreasuryOff-chainNAVTreasury yieldRedemption gateLow—High
Crypto-Collateralized (CDP)On-chain cryptoVaultLiquidations + feesLiquidation cascadeMediumHighLow
Hedged Synthetic DollarOn-chain or custodiedStrategy unwindHedge carryCarry / unwind stressMediumVariesMedium
Reflexive / UnbackedNoneBurn—Reflexive collapseHighMediumLow
Tokenized Credit FundOff-chainFund gateCredit yieldNAV markdownLow—High
Allocated Commodity ClaimVaulted metalPhysical delivery—Vault or title failureLow—High

  1. 01.Custodial Cash and Cash-Equivalents

    Centralized issuers custody dollars in bank accounts and short-term Treasuries; tokens are minted and redeemed on demand.

    126 tracked · +21 upcoming · +8 frozen · +7 dead

    Read the explainer
    Users send USD via wire or ACH to the issuer; the issuer custodies the dollars in cash, repos, and short-term Treasuries; the issuer mints STBL 1:1 and lets holders redeem at any time.01User USDwire / ACH02Issuer reservescustodied 1:103STBL mintedredeem any time

  2. 02.Tokenized Treasury

    Regulated funds hold short-duration Treasuries; the token is a fund share that accretes NAV instead of trading exactly at $1.

    42 tracked · +3 dead

    Read the explainer
    Investors subscribe cash into a regulated fund; the fund deploys into short-duration T-Bills and repurchase agreements; STBL units represent fund shares whose NAV accrues daily from the underlying yield.01Investor cashsubscribed via fund02T-Bills + Reposshort-duration RWA03STBL unitsNAV accrues daily

  3. 03.Crypto-Collateralized (CDP)

    Overcollateralized vaults issue stablecoin debt; positions liquidate when collateral falls below a safety ratio.

    76 tracked · +3 upcoming · +8 frozen · +7 dead

    Read the explainer
    Users deposit crypto collateral worth more than the debt they want to issue; a vault or peg-stability module mints STBL as debt against the collateral; the position is liquidated if the collateral value falls below the configured safety ratio.01Crypto collateralovercollateralized02Vault / PSMmint debt vs collateral03STBL mintedliquidates below ratio

  4. 04.Hedged Synthetic Dollar

    Offsetting economic exposures target a stable net value; implementations range from spot-plus-perp hedges to on-chain lending with matched borrow-and-stake legs.

    33 tracked · +1 upcoming · +3 frozen · +4 dead

    Read the explainer
    Users deposit crypto as spot collateral; the protocol opens an equal-size short perpetual futures position to neutralize price exposure; the funding rate paid by perp longs flows to STBL holders as yield.01Crypto depositspot collateral02Long spot + short perpdelta-neutral hedge03STBL mintedfunding-rate yield

  5. 05.Reflexive / Unbacked

    The peg is held by protocol-level mint/burn rules and arbitrage incentives rather than by 1:1 reserves.

    6 tracked · +17 dead

    Read the explainer
    Users burn a governance token to algorithmically mint STBL; an autonomous mint/burn module defends the peg through arbitrage incentives; the system has no 1:1 reserve backing, so confidence in the governance token is critical.01Burn governance tokenalgorithmic mint02Mint/burn AMOdefends peg via arbitrage03STBL mintedno 1:1 backing

  6. 06.Tokenized Credit Fund

    Regulated funds hold private credit, CLO tranches, or other non-Treasury debt; the token is a fund share whose NAV reflects credit losses and quarterly redemption gates.

    38 tracked

    Read the explainer
    Accredited investors subscribe cash into a regulated credit fund; the fund deploys into private credit, CLOs, or structured debt with real default risk and limited liquidity; STBL represents a fund share whose NAV reflects credit performance, with redemptions typically allowed only at quarterly windows.01Investor cashsubscribed via fund (KYC)02Private credit / CLOcredit risk, illiquid03STBL fund-shareNAV reflects credit losses

  7. 07.Allocated Commodity Claim

    The token is a title claim on specific vaulted metal rather than on dollars; it tracks the commodity price and can usually be redeemed for physical delivery in whole-bar lots.

    0 tracked

    Read the explainer
    Buyers send funds to the issuer, which purchases metal and allocates specific numbered bars in a named vault; STBL is minted as a title claim on that allocated metal, and holders can redeem for physical delivery subject to whole-bar minimums, fees, and eligibility.01Buyer fundsmetal purchased02Allocated vaultnumbered bars, segregated03STBL mintedtitle to specific metal