Publicação
Multihoming and design in stablecoins: effects on peg stability, transaction costs and usage intensity
| Resumo: | Using daily on-chain data for 92 stablecoins between 2018 and 2025, this study employs difference-in-differences to evaluate the impact of multihoming on peg stability, transaction costs, and usage intensity. Results indicate that multihoming has no statistically significant effect on peg stability and substantially reduces average transaction fees. A "fee paradox" emerges where high fees persist on Ethereum as a premium fixed cost for accessing high value transactions and liquidity, while expansion to cheaper chains unlocks smaller, previously priced-out transactions. Furthermore, multihoming drives massive expansion in total volume, with fiat-backed stablecoins capturing the largest gains compared to algorithmic and crypto collateralized designs |
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| Autores principais: | Arcão, Bernardo Filipe Raposo Rico de |
| Assunto: | Stablecoins Multihoming Peg stability Transaction costs Usage intensity Difference-in-differences |
| Ano: | 2026 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Using daily on-chain data for 92 stablecoins between 2018 and 2025, this study employs difference-in-differences to evaluate the impact of multihoming on peg stability, transaction costs, and usage intensity. Results indicate that multihoming has no statistically significant effect on peg stability and substantially reduces average transaction fees. A "fee paradox" emerges where high fees persist on Ethereum as a premium fixed cost for accessing high value transactions and liquidity, while expansion to cheaper chains unlocks smaller, previously priced-out transactions. Furthermore, multihoming drives massive expansion in total volume, with fiat-backed stablecoins capturing the largest gains compared to algorithmic and crypto collateralized designs |
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