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Stablecoins function perfectly until they don't. The others aren't immune to this kind of failure, though they may be more resistant. Once they become unpegged,
by not2b 4y ago
Stablecoins function perfectly until they don't. The others aren't immune to this kind of failure, though they may be more resistant. Once they become unpegged, you can get a "run on the bank", since there's no insurance to protect investors.
- vmception 4y agoThen add insurance. Imagine the people in the 1920s that were like “you know what would be funny… what if we got the government to add confidence to our private business with public money and then we get all the customers and skim a little bit from them at every turn, I know I know its dumb but that would be funny right”
- not2b 4y agoFor a bad enough crash, only governments can provide the necessary insurance.
- charcircuit 4y agoFor reference one protocol offered insurance for UST depegging for a 2% annual cost.
- vmception 4y agoNice, did it pay out? I think these unceremonious undramatic payouts should be news
- charcircuit 4y agoThe one I was looking at is a couple weeks out from paying out, but they are collecting everyone's claims right now.
- deleted 4y ago[deleted]