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A comment on The explosion in stablecoins revives a debate around “free banking”. Parent comment

Re:The explosion in stablecoins revives a debate around “fre... by pjc50 on Friday December 03, 2021 @11:43AM (#29432003)
OK, so it's a shadow bank: lend long, into other people's short term borrowing.

So it must have extremely high interest rates? Which raises the question, who's borrowing all this and how's it collateralized?

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Re:The explosion in stablecoins revives a debate around “fre... by diveanon on Friday December 03, 2021 @12:03PM (#29432250)
I think you are starting with an incorrect assumption and trying to work your way backwards from it.

If you want more mature examples of this structure in the wild I would start with pancakeswap ($4b market cap) and apeswap ($500m market cap).

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