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It's not a stablecoin if it doesn't have a fully audited 1:1 reserve. There aren't any of those, so the first one will be the only one. "stablecoin loses peg"
by dsr_ 4y ago
It's not a stablecoin if it doesn't have a fully audited 1:1 reserve. There aren't any of those, so the first one will be the only one.
"stablecoin loses peg" is an absolute proof that it wasn't a stablecoin any more than tranches of CDOs made high-quality bonds out of junk.
- pru567 4y agoGUSD is fully backed and audited. https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-dollar#section-superior-regulatory-requirements-how-gusd-is-regulated https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-do...
- dsr_ 4y agoIf the statements made there are correct and complete then I agree that GUSD is an actual stablecoin.
- mschuster91 4y ago> "stablecoin loses peg" is an absolute proof that it wasn't a stablecoin any more than tranches of CDOs made high-quality bonds out of junk. In the end, it's statistics (assuming that 10 out of 100 similarly sized debts default, the expected value for such a CDO is 90% of the face value of all its debts) and the assumption there will not be any major market issues such as a bank run, a pandemic or war that suddenly increase the risk of debts going bad - or in this case, the stablecoin running out of the liquidity it needs to maintain the peg. CDOs and all forms of coins are essentially bets.
- whimsicalism 4y agoEverything is a bet, even holding actual dollars.