[bsamuels]

They explain the risks, while excluding the risk of, you know, the stablecoin depegging.

This is like the 10th algo stablecoin to eat shit. You would think by now, a risk person could adequately describe these existential risks.

Stablegains was a rent collecting middleman. The risks are not characterized adequately on this page, and there ought to be some level of liability.

[dmitrygr]

They added a much more reasonable risk explanation after the event happened. Click the link that the submission is. Look at the before and after pictures

[Majestic121]

Where do they specifically exclude the risk of depegging?

From their website : "As Stablegains is not a traditional US bank, the funds are not secured by the FDIC. While we aim to make every effort to understand and mitigate everything that can possibly go wrong, there is still a non-zero risk you can lose your deposit. Our advice is to diversify and never invest all of your savings in a single place."

Of course they are selling themselves as pretty safe, and I'm sure they thought they were. But as you mention, it's like the 10th stablecoin to drop, so it's not exactly a surprise that crypto is a risky investment in any case.

[smugma]

“There is a non-zero risk that the peg does not recover to 100%.”

[nrmitchi]

If you’re taking this from their Twitter thread after this whole situation happened, that is definitely not the same thing as an upfront risk factor when collecting investments from people.

[smugma]

https://stablegains.zendesk.com/hc/en-us/articles/4402680705...

Article is from July 2021 (according to Google), updated 7 days ago