Stablecoins like UST, USN, USDD have a very tricky link to the dollar and the collateral pool, in the form of a native token of a particular blockchain, be it LUNA, NEAR, TRON, etc. Such projects offer or are about to offer 20-30% per annum in staking these stablecoins. Not a bad interest rate, is it? But will these projects be able to provide such a high interest rate all the time, and won't that provoke a cascading collapse of both the stablecoins, with the loss of the peg and a cascading collapse of the native tokens that act as reserve collateral?
After all, such high payouts to stakers must be accompanied by constant replenishment of these projects reserve funds. But what will happen if the money stops flowing in the right amount?
To be fair, the NEAR stablecoin is fractionally reserved, and not fully algorithmic like the others. This means that it is safer and most of the staking rewards don't come from NEAR, but from partner trading and lending platforms. We'll see if fractional stablecoins can work well long term but consider this... The USD is only going to lose value. Is that the boat you want to ride on or do you want something that is going to change your life in a few years. If that's the case, then I suggest investing in NEAR directly or a competitor even, like Fantom or ICP. ICP for example has a hackathon going on RN, which will bring DeFi usecases to the chain. There's never been a better time to ride that to the top.