Agora CEO: “Yield-based Stablecoins” are not currencies or stablecoins

Nick van Eck, CEO of stablecoin issuer Agora, believes that stablecoin issuers who provide passive income to holders are neglecting the core mission of stablecoins. These companies should focus on utility, liquidity, and means of exchange in order to benefit individuals and businesses as much as possible. Interest-bearing stablecoins provide a new dimension for DeFi users seeking to earn interest, but van Eck notes that such products may be classified as securities in many countries, limiting their customer base. This not only deprives your customers, but also your liquidity providers, suppliers, and higher utility limits. Your product cannot be freely traded. Financial services companies outside the United States that are regulated are unlikely to use your product because it brings risk without providing sufficient returns.