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Author: Hendrix , Researcher at Web3Caff Research
Cover: Logo from this project, Typography by Web3Caff Research
Word count: about 3600 words
With the recent passage of the stablecoin "Genius Act" (the Guiding and Establishing National Innovation for US Stablecoins Act, GENIUS for short) by the US Senate, stablecoins have become one of the hottest assets in the Web3 world. Whether it is CeFi or DeFi, whether it is the transfer and storage of individual users, or the payment and settlement behavior of enterprises on the chain, the frequency and scenarios of stablecoin usage have shown a continuous growth trend. However, the infrastructure that supports the operation of these stablecoins, that is, various public chain systems, have not been optimized for the core usage needs of stablecoins. To this end, Layer1 Stable, supported by Tether and based on USDT, was officially launched to solve the pain points of existing blockchains in stablecoin transactions, such as high fees, slow settlement and complex user experience. By providing customized solutions for individual and corporate users, Stable is committed to promoting the widespread adoption of stablecoins in daily payments, cross-border transactions and decentralized finance.
The existing general-purpose public chain systems such as Ethereum, Polygon, Solana, and BNB Chain, mostly have asset trading and smart contract execution as their main design goals in their underlying architecture. In such an architecture, stablecoins exist only as an ERC-20 contract object. Such a design brings a lot of problems: First, transfer failures and transaction congestion occur frequently, especially when the Ethereum main network is congested, small payments even require transfer fees that are higher than the payment amount. Secondly, when making payments, stablecoin users must handle various complex processes in the on-chain transaction process by themselves, such as gas fee preparation, cross-chain bridge use, multi-signature verification, etc. These links that do not exist in the traditional electronic payment process are extremely unfriendly to non-professional users. In addition, the cross-chain circulation of stablecoins is also extremely inefficient. Existing cross-chain bridges face security risks. USDT, USDC, etc. are deployed on different chains with different contract addresses, resulting in the formation of isolated liquidity pools on different chains for the same stablecoin, which reduces capital efficiency and brings about the problem of inefficient inter-chain settlement.
Stable is a dedicated public chain born in this context. Its goal is not only to facilitate stablecoin transactions, but to reconstruct the use, deployment and interaction of stablecoins through bottom-up systematic design. Its technical concept is not to pursue broad and comprehensive, but to be refined and specialized, aiming to become a universal channel for the use of stablecoins. In terms of architectural design, it abandons the traditional ERC-20 contract account model and adopts a native account system, so that stablecoins no longer exist in the form of third-party contracts. This structure eliminates the uncertainty, failure probability and complexity in the traditional contract call process, and also enables the transfer path to achieve system-level optimization. In addition, Stable eliminates the Gas burden on the user side. Its transactions no longer require users to pre-deposit native tokens of other public chains (such as ETH or SOL) to pay handling fees, but through the system backend resource pool and off-chain payment mechanism, a "zero-perception" Gas experience is achieved. These improvements not only optimize performance, but also reconstruct the use logic of stablecoins as payment assets.
In order to meet the needs of different user groups, Stable has also made differentiated designs on the product side:
- For individual users, Stable provides automatic cross-chain, gas-free peer-to-peer USDT0 (multi-chain version of USDT) transfers, native USDT experience wallet services, and supports direct generation of blockchain accounts from social accounts or emails, so that new users can use it without understanding the complex private key structure;
- For enterprise users, Stable ensures that enterprises can obtain stable transaction processing capabilities even when the network is congested through guaranteed block space allocation functions; it provides a transfer aggregator, allowing enterprises to merge multiple transactions into a single transaction, thereby reducing overall costs. In addition, enterprise users can also initiate confidential transfers, allowing institutions to execute transactions while protecting privacy.
In order to realize the vision of the stablecoin public chain, Stable has made in-depth optimizations on four key components at the technical level to achieve high performance:
- Consensus system (StableBFT): Stable blockchain initially used StableBFT. This is a customized PoS protocol based on CometBFT that decouples the network communication layer, consensus layer, and application state, thereby supporting a variety of application logic and development frameworks to ensure high throughput, low latency, and high reliability. StableBFT provides fast finality and good fault tolerance (network security can be guaranteed even if 1/3 of the nodes fail or act maliciously), which is critical to the security of financial transactions. In order to further optimize consensus performance, Stable plans to decouple data propagation from the consensus broadcast process and broadcast transactions directly to block proposers, thereby reducing network latency. The Stable team achieved 200,000 TPS in a sandbox environment during an internal proof-of-concept for the consensus protocol, which indicates that Stable will be able to support extremely large transaction volumes in the future;
- Execution layer Stable EVM and StableVM++: Stable EVM is Stable's Ethereum-compatible execution layer, which allows developers to seamlessly migrate existing Ethereum smart contracts to the Stable chain and use familiar Ethereum development tools. Through the pre-compilation mechanism, Stable EVM implements secure atomic calls between EVM smart contracts and core chain logic, which greatly enhances the functionality and interoperability of smart contracts. In order to maximize EVM execution performance, Stable plans to introduce StableVM++ to replace the Go-based EVM with a C++ implementation, which is expected to increase EVM execution speed by up to 6 times . In addition, StableVM++ will also integrate an OP parallel execution engine based on Block-STM, which can significantly improve throughput by assuming that transactions do not conflict and process them in parallel, rolling back and re-executing sequentially only when conflicts are detected, thereby maximizing the use of computing resources;
- In terms of state management and data persistence, Stable launched StableDB as the full-chain state database, which has layered and disassembled the transaction state tree structure. Its storage adopts a layered model based on data popularity, maintaining frequently traded accounts, active circulating assets, USDT main path addresses, etc. in the hot cache and accessing them through fast mapping. The storage layer supports snapshot compression and state tracking, which can greatly reduce node synchronization time and enhance the query efficiency of historical status;
- In terms of the network interaction layer, Stable has built a high-performance RPC framework that supports the standard Web3 JSON-RPC interface while introducing mechanisms such as batch routing, load estimation, and asynchronous retry. This allows wallets and service providers to obtain millisecond-level responses through the RPC gateway and achieve interface stability in a high-concurrency environment. Its RPC design also combines transaction oracles to support path discovery and dynamic chain switching, ensuring that on-chain transactions always choose the optimal path for execution.
In terms of cross-chain interoperability, Stable has deeply integrated with LayerZero, and the latter has realized the state mapping of USDT between multiple chains. The traditional cross-chain bridge mechanism usually relies on the "locking + Mint" model, that is, locking assets on the source chain and casting an equal amount of assets on the target chain, and unlocking the target chain assets after the transaction is finally confirmed. In this process, there are problems such as intermediate asset retention, bilateral trust dependence, and fund freezing after transaction failure. LayerZero provides a message-level communication mechanism that allows the target chain to call the state contract after confirming the original chain event. Stable further builds the USDT0 standard, maps user accounts into a unified structure in a multi-chain environment, and builds an atomic transfer process. When a user initiates a transfer on chain A (locking or destroying tokens at the same time), it actually submits a USDT transfer intention to an "inter-chain entry contract", which synchronizes the state of chain B with LayerZero's message channel, and then updates the state of chain A while chain B completes Mint and writes the balance, thereby forming an atomic and consistent state change. This method ensures that the user perceives the entire transfer process as a single transaction, without the need to manually switch chains or bridge in the wallet. This design may become the standard paradigm for the cross-chain circulation of stablecoins in the future.
In general, Stable did not reinvent the basic structure of the blockchain. Instead, it systematically optimized core technical modules such as on-chain accounts, transaction paths, consensus confirmation, execution environment, and inter-chain communication with stablecoins as the core user object on the original architecture. Through clear product positioning, in-depth protocol design, and pragmatic cross-chain mechanisms, Stable not only solves the experience problems of existing stablecoins in a multi-chain environment, but also provides real native chain support for stablecoins as a basic financial asset. At a time when the blockchain industry is entering the stage of real commercialization and large-scale user use, Stable's design concept and technical implementation represent another possible direction of "building a dedicated chain for specific assets". Its impact will far exceed its own ecology and may reconstruct the technical foundation and economic structure of the stablecoin industry chain.
The planned Stable public chain is not only a supplement to the existing public chain market, but it is also likely to open a new era of stablecoin development and have a profound impact on the entire Web3 industry. First, Stable will greatly accelerate the "out-of-circle" and mainstream adoption of stablecoins. By providing a nearly free, instant and user-friendly payment infrastructure, Stable has cleared the main obstacles that prevent stablecoins from becoming a daily payment tool. It is foreseeable that applications based on Stable will penetrate into multiple fields such as cross-border remittances, e-commerce, and gig economy salary payments. Secondly, Stable will reshape the DeFi landscape . Most of the current DeFi applications are limited by the performance and cost of Ethereum. Stable's high performance and low-cost environment will give birth to a new DeFi gameplay. For example, high-frequency market-making strategies, micropayment-driven financial derivatives, and more complex structured products will become possible. Furthermore, Stable will become an ideal entry point for enterprises and financial institutions to embrace digital assets. For enterprises pursuing efficiency and cost control, Stable provides a more convenient global payment and settlement layer than the traditional banking system. Its high performance and predictability enable it to meet the stringent requirements of the enterprise level. As the global regulatory framework for digital assets becomes clearer, a compliance-friendly public chain designed specifically for stablecoins will become the preferred platform for traditional financial institutions to enter the Web3 world. In addition, Stable will challenge the existing public chain landscape . At present, public chains such as Ethereum and Tron have captured huge network value by carrying a large number of stablecoin transactions. As a specialized "stablecoin settlement layer", Stable is bound to divert a large amount of trading activities. This may force general-purpose public chains to rethink their value positioning and focus more on their core advantages, such as decentralized application platforms or the ultimate security layer of high-value assets, thereby driving the entire industry towards a healthier direction with clearer division of labor and multi-layer collaboration.
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