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Autori principali: Ling, Shengchen, Du, Yuefeng, Zhou, Yajin, Wu, Lei, Wang, Cong, Jia, Xiaohua, Yan, Houmin
Natura: Preprint
Pubblicazione: 2025
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Accesso online:https://arxiv.org/abs/2506.17622
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author Ling, Shengchen
Du, Yuefeng
Zhou, Yajin
Wu, Lei
Wang, Cong
Jia, Xiaohua
Yan, Houmin
author_facet Ling, Shengchen
Du, Yuefeng
Zhou, Yajin
Wu, Lei
Wang, Cong
Jia, Xiaohua
Yan, Houmin
contents Stablecoins have become significant assets in modern finance, with a market capitalization exceeding USD 246 billion (May 2025). Yet, despite their systemic importance, a comprehensive and risk-oriented understanding of crucial aspects like their design trade-offs, security dynamics, and interdependent failure pathways often remains underdeveloped. This SoK confronts this gap through a large-scale analysis of 157 research studies, 95 active stablecoins, and 44 major security incidents. Our analysis establishes four pivotal insights: 1) stability is best understood not an inherent property but an emergent, fragile state reliant on the interplay between market confidence and continuous liquidity; 2) stablecoin designs demonstrate trade-offs in risk specialization instead of mitigation; 3) the widespread integration of yield mechanisms imposes a "dual mandate" that creates a systemic tension between the core mission of stability and the high-risk financial engineering required for competitive returns; and 4) major security incidents act as acute "evolutionary pressures", forging resilience by stress-testing designs and aggressively redefining the security frontier. We introduce the Stablecoin LEGO framework, a quantitative methodology mapping historical failures to current designs. Its application reveals that a lower assessed risk strongly correlates with integrating lessons from past incidents. We hope this provides a systematic foundation for building, evaluating, and regulating more resilient stablecoins.
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spellingShingle SoK: Stablecoin Designs, Risks, and the Stablecoin LEGO
Ling, Shengchen
Du, Yuefeng
Zhou, Yajin
Wu, Lei
Wang, Cong
Jia, Xiaohua
Yan, Houmin
Cryptography and Security
Stablecoins have become significant assets in modern finance, with a market capitalization exceeding USD 246 billion (May 2025). Yet, despite their systemic importance, a comprehensive and risk-oriented understanding of crucial aspects like their design trade-offs, security dynamics, and interdependent failure pathways often remains underdeveloped. This SoK confronts this gap through a large-scale analysis of 157 research studies, 95 active stablecoins, and 44 major security incidents. Our analysis establishes four pivotal insights: 1) stability is best understood not an inherent property but an emergent, fragile state reliant on the interplay between market confidence and continuous liquidity; 2) stablecoin designs demonstrate trade-offs in risk specialization instead of mitigation; 3) the widespread integration of yield mechanisms imposes a "dual mandate" that creates a systemic tension between the core mission of stability and the high-risk financial engineering required for competitive returns; and 4) major security incidents act as acute "evolutionary pressures", forging resilience by stress-testing designs and aggressively redefining the security frontier. We introduce the Stablecoin LEGO framework, a quantitative methodology mapping historical failures to current designs. Its application reveals that a lower assessed risk strongly correlates with integrating lessons from past incidents. We hope this provides a systematic foundation for building, evaluating, and regulating more resilient stablecoins.
title SoK: Stablecoin Designs, Risks, and the Stablecoin LEGO
topic Cryptography and Security
url https://arxiv.org/abs/2506.17622