If you want to deep dive, here is our litepaper: https://commonwealth.im/membrane/discussion/14701-membrane-the-next-step-in-evolution
For now this’ll highlight the main aspects of Membrane’s success. Decentralized stablecoins have failed to scale because scale introduces greed that erodes either censorship resistance ($DAI) or stability ($UST), CDT sprouts as a compromising solution. Fiat-backed tokens are the culprits for the lose of censorship resistance in most cases due to their ability to supercharge growth. Membrane’s model allows tokens like USDC to be used as collateral & be liquidated in the face of depegs due to insolvencies or chain blacklists from Noble USDC. This alone grants an extra layer of safety when scaling the stability at a slight cost to capital efficiency, a temporary tradeoff while decentralized
