How Propulence’s Inflation-Resistant Stablecoins($QUIDS) Outperform USDT and USDC

Propulence

• 2 min read
Propulence’s Inflation-Resistant Stablecoins($QUIDS) Outperform USDT and USDC
Propulence’s Inflation-Resistant Stablecoins($QUIDS) Outperform USDT and USDC

The Problem With Traditional Stablecoins

Stablecoins like USDT (Tether) and USDC (USD Coin) dominate the cryptocurrency market, with a combined $200+ billion in circulation. However, they share a critical flaw: they are pegged to fiat currencies, which are vulnerable to inflation, devaluation, and central bank policies.

  • US inflation reached 3.5% in 2024, eroding purchasing power.
  • USDT and USDC holders lose value over time as the dollar weakens.

Propulence solves this problem by introducing the world’s first real estate-backed, inflation-resistant stablecoin - $QUIDS.

The Weaknesses of USDT and USDC

A. Pegged to Depreciating Fiat

  • USDT and USDC mirror the USD, which has lost approximately 96% of its value since 1913.
  • No inflation hedge—if the USD loses 5% annually, so does your stablecoin.

B. Centralized and Opaque Backing

  • USDT: Only 85% backed by "cash equivalents" (commercial paper, loans).
  • USDC: Relies on bank deposits (exposing holders to bank failures, as seen in the SVB collapse).

C. No Passive Yield for Holders

USDT and USDC earn 0% interest unless actively lent out (introducing DeFi risks).

How Propulence’s Stablecoin Works?

Propulence’s stablecoin ($QUIDS) is collateralized by income-generating real estate assets, offering key advantages:

A. Inflation Resistance

  • Real estate historically appreciates 8–10% annually, outpacing inflation.
  • Rental income adjusts with inflation (lease rates rise with CPI), preserving value.

B. Full Transparency and Backing

  • Each $QUIDS is backed 1:1 by tokenized real estate (verifiable on-chain).
  • Regular third-party audits ensure solvency (unlike Tether’s opaque reserves).

C. Built-In Passive Yield

  • Holders earn 5–8% APY automatically from property rental income.
  • No need for risky DeFi protocols—yield comes from real-world cash flow.

Direct Comparison: $QUIDS vs. USDT/USDC

Feature

$QUIDS

USDT / USDC

Backing Asset

Real estate (appreciates)

Fiat currency (depreciates)

Inflation Protection

Yes (property value ↑)

No (USD loses value)

Passive Yield

5–8% (rental income)

0% (unless staked)

Transparency

On-chain verification

Opaque reserves

Risk Exposure

Diversified properties

Bank failures

Why This Matters for Investors?

A. Long-Term Wealth Preservation

  • 10,000 in USDT → 8,600 after 5 years (assuming 3% annual inflation)
  • 10,000 in $QUIDS → $18,500+ (5% rental yield + 8% appreciation)

B. Lower Risk Than Banks or DeFi

  • No reliance on banks (unlike USDC’s exposure to banking crises).
  • No smart contract vulnerabilities (unlike algorithmic stablecoins).

C. Global Accessibility

  • Anyone can hold $QUIDS—no need to purchase physical real estate.

The Future of Stablecoins

Propulence’s model has the potential to disrupt the $130B stablecoin market by offering:

  • A true store of value (not just a USD clone).
  • Passive income without price volatility.
  • Unmatched transparency compared to Tether and Circle.

Central banks are already exploring asset-backed digital currencies (e.g., Switzerland’s tokenized bonds). Propulence is pioneering this shift in decentralized finance.

Conclusion: A Stablecoin Designed for Growth

While USDT and USDC are useful for trading, they fail as long-term wealth preservation tools. Propulence’s real estate-backed stablecoin provides:

  • Inflation protection through appreciating collateral.
  • Built-in yield from rental income.
  • Full transparency via blockchain verification.

Learn more about Propulence’s stablecoin: