Top stablecoins shed $7B in May as traders redeem tokens en masse

Re:Top stablecoins shed $7B in May as traders redeem tokens ... by bitcharmer on Sunday May 22, 2022 @02:37AM (#31465480)

It seems we have a serious problem with the first generation of cryptocurrencies being mainly a vehicle for scams and otherwise extracting value from gullible people.

From what I've seen so far in most cases "stable-" isn't really stable and currency definitely doesn't work like one.

Or am I just biased by sourcing my information from HN and only seeing the cases where crypto crashes and burns instead of all the successful ones no one here is talking about. Are there any?

[ Parent | on HN ]

Re:Top stablecoins shed $7B in May as traders redeem tokens ... by iownzerobtc on Sunday May 22, 2022 @02:50AM (#31465560)

USDC and DAI are both collateralized and doing fine at the moment and can operate as a decentralized currency and payment rail.

It is never 100% risk free, though. The best way to maintain peg to dollar is just to hold the dollar. Many stablecoin holders are taking on this higher risk as they seek yield in protocols like Aave and dYdX, or to have ready liquidity to deploy this in the crypto investment market.

[ Parent | on HN ]

Re:Top stablecoins shed $7B in May as traders redeem tokens ... by dubswithus on Sunday May 22, 2022 @09:41AM (#31468082)

I don’t think any stable coins hold 1:1 because it would be impossible to earn much money on the float?

[ Parent | on HN ]