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
379
Across 10 designs
10 mechanisms
+38 upcoming
+23 frozen
Active coins by mechanism
- 129Custodial Cash
- 49Tokenized Treasury
- 71Crypto CDP
- 36Hedged Synthetic
- 4Reflexive / Unbacked
- 40Credit Fund
- 0Commodity Claim
- 2UCITS / TRS Fund
- 10Shared Reserve
- 38Protocol Position
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 explainerTokenized Treasury stablecoins
Compare the cleaner short-duration Treasury model before reading credit-fund designs with longer asset and gate risk.
Read the explainerAlgorithmic stablecoins
Use the reflexive failure model as the contrast case for undercollateralized designs and collapse-style case studies.
Read the explainerAt a glance
10 mechanisms| Mechanism | Collateral location | Redemption right | Yield source | Primary failure mode | Governance dep. | Oracle dep. | Jurisdiction dep. |
|---|---|---|---|---|---|---|---|
| Custodial Cash and Cash-Equivalents | Off-chain | 1:1 | — | Banking-rail freeze | Low | — | High |
| Tokenized Treasury | Off-chain | NAV | Treasury yield | Redemption gate | Low | — | High |
| Crypto-Collateralized (CDP) | On-chain crypto | Vault | Liquidations + fees | Liquidation cascade | Medium | High | Low |
| Hedged Synthetic Dollar | On-chain or custodied | Strategy unwind | Hedge carry | Carry / unwind stress | Medium | Varies | Medium |
| Reflexive / Unbacked | None | Burn | — | Reflexive collapse | High | Medium | Low |
| Tokenized Credit Fund | Off-chain | Fund gate | Credit yield | NAV markdown | Low | — | High |
| Allocated Commodity Claim | Vaulted metal | Physical delivery | — | Vault or title failure | Low | — | High |
| UCITS Physical Securities and TRS Fund | Physical securities + TRS | Fund share at NAV; gates | Portfolio / swap return | Hedge / counterparty loss | Medium | Administrator NAV | High |
| Shared Reserve Liability | Common reserve pool | Protocol exchange; liquidity gates | Reserve income, if passed on | Shared liability deficit | High | High | Varies |
| Protocol Position Liability | Bridge / vault / module | Operational position claim; gates | Underlying position, if passed on | Position / withdrawal failure | High | Varies | Varies |
01.Custodial Cash and Cash-Equivalents
Centralized issuers custody dollars in bank accounts and short-term Treasuries; tokens are minted and redeemed on demand.
129 tracked · +32 upcoming · +9 frozen · +8 dead
Read the explainerstress: banking-rail freeze (USDC, Mar 2023)
02.Tokenized Treasury
Regulated funds hold short-duration Treasuries; the token is a fund share that accretes NAV instead of trading exactly at $1.
49 tracked · +3 dead
Read the explainerstress: instant-redemption cap / stablecoin-rail constraint
03.Crypto-Collateralized (CDP)
Overcollateralized vaults issue stablecoin debt; positions liquidate when collateral falls below a safety ratio.
71 tracked · +5 upcoming · +10 frozen · +9 dead
Read the explainerstress: collateral cascade (DAI, Mar 2020)
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.
36 tracked · +1 upcoming · +3 frozen · +4 dead
Read the explainerstress: funding-rate inversion
05.Reflexive / Unbacked
The peg is held by protocol-level mint/burn rules and arbitrage incentives rather than by 1:1 reserves.
4 tracked · +14 dead
Read the explainerstress: reflexive collapse (UST, May 2022)
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.
40 tracked · +1 frozen
Read the explainerstress: NAV markdown / quarterly gate
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 explainerstress: vault or title failure; whole-bar redemption minimums
08.UCITS Physical Securities and TRS Fund
The token represents a proportional fund interest; physical securities and total-return swaps target the share class's return, with separate NAV, counterparty and recovery risks.
2 tracked
Read the explainerstress: incomplete hedge / counterparty collateral loss / fund gate
09.Shared Reserve Liability
Several protocol-issued liabilities draw on one reserve pool; exchange rights do not establish exclusive allocation, legal priority or complete liability coverage.
10 tracked
Read the explainerstress: shared liability deficit / encumbrance / exchange liquidity gate
10.Protocol Position Liability
Protocol-issued tokens rely on bridge, vault or module positions; the local claim and position continuity remain distinct from the underlying assets' backing.
38 tracked
Read the explainerstress: position / withdrawal failure / unreconciled residual liabilities