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A comment on UST Stablecoin Loses Dollar Peg. Parent comment

Re:UST Stablecoin Loses Dollar Peg by charcircuit on Tuesday May 10, 2022 @08:38AM (#31326340)
I was just trying to make up some sort of example where you can gain income by holding on to someone's collateral. I wasn't trying to say how something typically works.
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Re:UST Stablecoin Loses Dollar Peg by shkkmo on Tuesday May 10, 2022 @09:20AM (#31326763)
That isn't how collateral works, so you really are just making stuff up. If you did start doing this sort of thing as a bank you would attract regulatory attention pretty quick.
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Re:UST Stablecoin Loses Dollar Peg by kristjansson on Tuesday May 10, 2022 @12:42PM (#31329214)
You're basically talking about reypothecation[0]

[0]: https://www.investopedia.com/terms/r/rehypothecation.asp

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