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AFAIK all DeFi lending based around Tether is predicated on the idea that a Tether is worth $1 USD. I'm not sure the smart contracts / etc involved are particul
by fastball 5y ago
AFAIK all DeFi lending based around Tether is predicated on the idea that a Tether is worth $1 USD. I'm not sure the smart contracts / etc involved are particularly resilient if that changes. The attempts at making these DeFi systems robust is almost entirely focused on what the system needs to do when the value of the non-stable crypto fluctuates wildly, not the stablecoin.
- bouncycastle 5y agoNope, Tether is a soft-peg, meaning that it sometimes trades above or below $1. Therefore the contracts can deal with it going below or over, and it often does.