DeFi protocols launch stablecoins to lure new users and liquidity, but does it work?

cointelegraph.com:

Stablecoin projects have been thrust into the limelight over the past month as the popularity of algorithmic stablecoins and the collapse of the Terra project put a spotlight on the important role dollar-pegged assets play in the crypto market.

In response to the void left by UST, multiple protocols have released new stablecoin projects in an effort to attract new users and capture liquidity. Generally speaking, the DeFi sector is full of gimmicks that are designed to entice user participation and it's possible that the recent stablecoin launch programs are simply the next trending tactic being used to boost TVL on DeFi platforms. 

Let's take a look at some of the newest stablecoins to hit the market and what impact they may or may not be having within DeFi.

One of the biggest stablecoin projects to launch recently is USDD, a decentralized algorithmic stablecoin on Tron blockchain. Since launching on May 5, USDD has experienced rapid growth in terms of its circulating supply, which currently sits near 601.86 million and its integration within the Tron ecosystem is relatively widespread.

USDD is also available on the Ethereum (ETH) network and BNB Smart Chain (BSC), which has helped to increase the tokens distribution along with providing additional yield opportunities.

There are multiple liquidity provider pools available to USDD holders that offer 20% APY or more across various protocols, including JustLend, SunSwap, Ellipsis and Curve. In the time since USDD launched, the price of TRX has increased 17% from $0.07 to its current price of $0.0818 after briefly hitting a high of $0.092 on May 31.

Fantom recently released fUSD, its first native stablecoin, which is an over-collateralized and can be minted using Fantom (FTM),