DYAD

DYAD is an overcollateralized stablecoin protocol built on Ethereum. Users deposit collateral such as WETH, wstETH, tBTC, or sUSDe into a vault, and mint DYAD against it. The core innovation is the introduction of KEROSENE, a secondary collateral token. Users must first hold a Note NFT (supply-capped) to mint DYAD, and can use KEROSENE as part of their collateral position, which lowers the effective collateral ratio and improves capital efficiency.

Its core narrative is a stablecoin that requires no governance and no price oracle. KEROSENE's value is derived from the protocol's excess collateral (TVL minus DYAD supply), creating a self-balancing mechanism that maintains DYAD's peg without external price feeds. This addresses the pain point of traditional CDP protocols like MakerDAO, which require high collateral ratios (typically 150%+) and rely on governance and oracles, leading to low capital efficiency and systemic risk.

In the past six months (2026-03-02 to 2026-09-02), DYAD has faced significant challenges. In February 2026, the DYAD token price dropped sharply amid concerns about a potential "death spiral" risk, where falling KEROSENE prices could trigger cascading liquidations. The protocol's TVL has also declined from its peak. While the team has continued development, the project has not yet demonstrated sustained user growth or stability, and its long-term viability remains uncertain.