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There exist overcollateralized decentralized stablecoins. Look into DAI as the most prominent example.

• ceejayoz 4y ago
  Being overcollateralized doesn't save you if the value of the collateral tanks beyond your capacity to rapidly unload. edit: Tron itself bragged about their overcollateralization. https://medium.com/@usddio/usdd-upgrades-into-the-first-over-collateralized-decentralized-stablecoin-20907b81aec9 https://medium.com/@usddio/usdd-upgrades-into-the-first-over... > “Spearheading the Stablecoin 3.0 era, the upgraded, over-collateralized USDD will add more diversified features to underpin its stability,” said H.E. Justin Sun, Founder of TRON. “The $10 billion reserves pledged by the TDR will enable USDD to become the most reliable decentralized stablecoin with the highest collateral ratio in blockchain history. Currently, the 200%+ collateral ratio offers USDD a very strong safety net.”
  • t_mann 4y ago
    Nothing is 100% safe, but >150% overcollateralization is a rather decent buffer, even after accounting for crypto volatility. As a comparison, banks usually operate with less than 5% equity, and that's based on rather optimistic book values, as indicated by often significantly lower market capitalizations.
    • ceejayoz 4y ago
      Any comparison that ignores the fact that banks have the FDIC backing up their depositors is a poor one.
    • deleted 4y ago
      [deleted]
    • JumpCrisscross 4y ago
      > >150% overcollateralization is a rather decent buffer, even after accounting for crypto volatility Oof, I remember people saying this before 2008.