The aim of this paper is to enhance the design of stablecoins based on user feedback and as a result increases trust and adoption of DeFi. The state-of-the-art research focuses on stablecoins and DeFi with little knowledge about the actual users and their preferences. The report addresses this by including results of a conducted questionnaire with a total sample of 532 and a completion rate of 24.44%.

The results show a clear preference for a stablecoin which can be accessed individually, is highly liquid, reserves are secured, bridges TradFi and DeFi, is run as a legal company and supports multiple layer 1 chains as well as fiat currencies. The participants identified the importance of KYC and KYT while bridging between TradFi and DeFi. All these dimensions are incorporated in the suggested stablecoin design which is then evaluated by two experts in the field, Dr. Pascal Moriggl as well as Dr. Felix Härer. The core design aspects of the stablecoin are regarded as operational.

Challenges are stated regarding bridging from TradFi to DeFi especially for interoperability and being legally compliant in all markets present.