Grid-Backed Stablecoins: Design Overview

What Are Grid-Backed Stablecoins?

A grid-backed stablecoin is a cryptocurrency pegged 1:1 to USD, but collateralized by a basket of tokenized grid capacity certificates (PoC, FCE, 24/7 CFE) plus safe assets like T-bills.

Design Components

Collateral Basket: Mix of Proof-of-Curtailment tokens, Firm Clean Energy certificates, and T-bills
Overcollateralization: Typically 150% collateral-to-stablecoin ratio to handle LMP volatility
Oracle Design: Real-time feeds from ISO settlements (Chainlink, PYTH, custom) that update collateral values hourly
Redemption Paths: Can redeem for USD, physical MWh dispatch, or synthetic capacity swaps
Power-Basis Settlement: Enables atomic settlement of basis swaps between different grid zones

Why It Matters

Grid-backed stablecoins solve the $2 trillion power-basis market settlement problem. Currently, basis swaps (hedging price differences between grid zones) take days to clear through OTC desks. With a grid stablecoin, these trades settle in 200 milliseconds on-chain.

2026 Forecast

$500M Day 1 mint expected in March 2026
40% from miners, 35% hyperscalers, 25% VPP households
8-12% APY yield for stakers backing the stability pool

Leading Contenders (Q4 2025)

Traverse (U.S.): Solana-based, FERC fast-track approval, $420M TVL
FlexiDAO (EU): Polygon-based, MiCA-compliant, €310M TVL
Daylight (Plasma): Ethereum L2, consumer VPP focus, $680M TVL