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Re:Algorithmic stablecoins are provably impossible without c... by BbzzbB on Monday May 30, 2022 @08:01AM (#31558101)
GP's last paragraph seems to imply to me too that trust is all that keeps the pegs. I think the billions of dollars in arbitrage opportunity is a bit more powerful than trust as we've seen a few days ago when USDT lost its peg, but what do I know

Trust keeps bank runs away, arbitrage keeps the peg tight (feeding into said trust).

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