Two thought experiments to evaluate automated stablecoins

Re:Two thought experiments to evaluate automated stablecoins by bergenty on Thursday May 26, 2022 @08:22PM (#31524823)

I have a simpler thought experiment. Every time you own a tether, you buy it for a dollar. That dollar goes into a large room. Now each tether is backed by a literal dollar. What’s the problem? I can’t wrap my head around what’s so hard about this.

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Re:Two thought experiments to evaluate automated stablecoins by lmm on Thursday May 26, 2022 @08:29PM (#31524863)

What happens when a bunch of literal or metaphorical rats eat the dollars?

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Re:Two thought experiments to evaluate automated stablecoins by lesam on Thursday May 26, 2022 @08:47PM (#31524973)

Who pays for security for the room with the dollars?

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Re:Two thought experiments to evaluate automated stablecoins by bergenty on Friday May 27, 2022 @01:33AM (#31526304)

Okay buy US government bonds with them. What else am I not seeing?

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Re:Two thought experiments to evaluate automated stablecoins by kortilla on Friday May 27, 2022 @02:09AM (#31526498)

Now you have a drawdown and bond prices have declined because interest rates increased. Whoopsie, you’re fucked.

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Re:Two thought experiments to evaluate automated stablecoins by bergenty on Sunday May 29, 2022 @03:56AM (#31547315)

I was referring to fixed rate bonds. Alternatively charge 1% on each transaction for security.

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