[patio11]

> In this case the pertinent question to ask oneself a priori is: "if, as I believe, tether breaks down what are the chances that people will be defaulting on Defi platforms thus turning my clever trade in a catastrophe where I lose my principal?"

I am extremely aware counterparty risk in DeFi protocols, which is why I have a toy-sized position and only put that on once someone explained to me, persuasively, that in futures where DeFi explodes I will gain more utility from the story than I will lose from a toy-sized position. I have sometime sardonically referred to this as 'mining comedy gold.'

This is also why, when people ask me how to short Tether, I try my darndest to avoid blessing any particular mechanism, because you can be right and still lose everything, as you're aware. I have been saying that on HN since before DeFi existed as a concept.