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