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Centralised stable coins maybe or yes. But there are also decentralized stable coins like DAI that have smart contracts to ensure a level of backing
by ostenning 5y ago
Centralised stable coins maybe or yes. But there are also decentralized stable coins like DAI that have smart contracts to ensure a level of backing
- shkkmo 5y agoIsn't the DAI better describes as semi-stable since it holds reserves in Ether and other cryptocurrencies but is pegged to the dollar. This exposes it to systemic risk in the way that stablecoins backed by reserves in their pegged currency are not. The degree of excess in their reserves does cushion against a lot of violatility, but that cushion is finite and could easily vanish in a cryptomarket crash.
- coolspot 5y agoAFAIK it survived ETH price crash from $1400 to $90 .
- shkkmo 5y agoHave any details on this? I find those numbers implausible without a context or a citation.
- ostenning 5y agoYou can just look at the market cap and price history of DAI through the last market crashes
- shkkmo 5y agoI did, it was not clear to me what was being referenced. If there is a good example of DAI surviving such instability, a reference discussing how that happened seems like a pretty reasonable requests given the strong claims that are being made.
- tootahe45 5y ago> decentralized stable coins like DAI that have smart contracts to ensure a level of backing Which has been collateralized by centralized stable coins including tether, if i recall correctly..
- whimsicalism 5y agoDai is not collateralized by tether.