3 ms·
Why not have a step between #1 and #2? "Tether immediately sells the BTC for $10" There's still some risk if the price is rapidly moving and they can only get
by function_seven 4y ago
Why not have a step between #1 and #2? "Tether immediately sells the BTC for $10"
There's still some risk if the price is rapidly moving and they can only get $9.99 for the BTC you sent them, but that could be mitigated by ordering the transactions to keep the peg: you send $10 of BTC, they sell it (and "only" get $9.99), they give you 9.99 USDT and say, "tough, what you thought was $10/BTC was really $9.99/BTC"
- jakelazaroff 4y ago> Why not have a step between #1 and #2? "Tether immediately sells the BTC for $10" Yes, why indeed? That's a great question for Tether! If they were holding enough actual cash reserves to cover all the USDT in circulation, there wouldn't be an issue.
- function_seven 4y agoMy apologies, I was talking about a hypothetical true stablecoin not whatever Tether is.