0 sats \ 2 replies \ @037447d9ca 10 Mar 2023 \ on: What happens to your "stablecoins" when their bank goes bust? bitcoin
When you say stablecoin I think in something like DAI, where there's no bank behind, it's silly that we call USDC or USDT under the same umbrella term, as they are just IOUs issued by a central party, very different in nature.
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0 sats \ 1 reply \ @Jonathan_Adly OP 10 Mar 2023
How much DAI is backed by USDC?
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0 sats \ 0 replies \ @037447d9ca 11 Mar 2023
That's not the point, I just said DAI because it's the most popular decentralized stablecoin. At the beggining it was 100% backed by ETH, then the project pivoted and now it's a complete mess (still much better than an IOU tho), but the original version is still running as SAI. There are stablecoins 100% backed by hard currency like bitcoin, with trustless mechanisms for redemption, we should focus on them, and ignore the scammy IOUs aka shitcoins.
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