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The counter party is a smart contract AMM like curve or aave. Your only issue is liquidity and chain reliability.
by randomhodler84 4y ago
The counter party is a smart contract AMM like curve or aave. Your only issue is liquidity and chain reliability.
- lmm 4y agoBoth of which are pretty big issues in the scenario we're talking about. When Tether crashes it will take down a significant chunk of the crypto world with it.
- X6S1x6Okd1st 4y agoI wouldn't be surprised if congestion is extremely high on ETH if USDT collapses, but I'd be shocked if the chain started missing blocks. Do you think that USDC would depeg as well?
- lmm 4y agoIf the bid and offer are like $2 - $.50, do you consider that a "depeg" or not? I think liquidity will disappear, transaction fees will go to the moon, and there won't really be a meaningful "price" because trades won't be happening.