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by landemva 1627 days ago
If you do want to learn how this works with defi, look at DAI and those loans which are based on overcollateralization and incentives for people to hunt for and liquidate others who don't have enough collateralization.

2008 was caused by starting with undercollateralized loans enabled in part by fake rating agency ratings, and failure of regulators to regulate. That system failed and the backstop FDIC can only write checks up to around a 3% failure.
1 comments
cuteboy19 1627 days ago
The stablecoin tether is a great example of how cryptocurrencies do not solve this problem. Tether claims to have a 1:1 dollar backing for its token and yet investigation after investigation found absolutely nothing backing their coins. Tether is the most popular stablecoin out there and has a "market cap" of 78 billion [0]. This proves that whatever issues the current banking system has, cryptocurrency has them much worse.

[0] https://coinmarketcap.com/currencies/tether/

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landemva 1627 days ago
Not sure how that proves CEFI is good. If you like tether you can use it. I don't.

USDP appears to be the most sound, with USDC after that. You may use any of those or none of those or make your own. You are free to choose. Your body, your choice.

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