2 ms·

How is this issue relevant to keeping vs. losing the treasury funds?

• JumpCrisscross 4y ago
  > How is this issue relevant to keeping vs. losing the treasury funds? It's relevant to the difficulty of launching and operating a U.S. dollar stablecoin.
  • yreg 4y ago
    Fine, operating a stable coin is not trivial. What I meant by saying 'it seems easy on paper' is that the need to be profitable shouldn't force you to make decisions which eventually lead your treasury to not being valuable enough to back the minted coins. Also: Perhaps I don't understand how tether works, but I don't see why they need to be liable for holding customer funds. Why do they need a deposit/withdrawal process at all? Can't they just do the following? IF USDT on open markets is <$1 THEN buy coins and burn them IF USDT on open markets is >$1 THEN mint coins and sell them And then they can do whatever they want with the treasury, no? Store it in banks or buy US treasury bonds, etc. Just don't lose it.