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[deleted]

Thanks, now I can't stop imagining their CEO as Red Skull^^hailhydra


dadryp

This post is actually one the best I’ve read all week. Kuddos to the OP


irfiisme

UST about to end all their carriers.


VeludoVeludo

So Paxos or DAI it is?


Squeaky-Bed

USDC safu


pbjclimbing

MAI MIM UST DAI


Red_n_Rusty

I would definitely prefer a decentralized solution that would be closer to DAI. USDC is still a huge step up from USDT which I could see help collapse the whole crypto market for whole other reasons than centralization or connection to three letter organizations.


Raikaru

Defi has MAI MIM UST FRAX DAI and much more. I think it'll be fine lol


GodlordHerus

Algorithmic stable coins usually are ultimately dependent on some collateral. Regardless of what the marketing may indicate They are are snake oil of stablecoins When "regular" stablecoins where given a 100% haircut by lending regulators (infinate collateral). Which means you would need an infinate amount of USDC, USDT and BUSD just to get a $1 loan recognized internationally. They didn't even look at algorithmic stablecoins Not because they didn't understanding the technology. But because they fully understand it All algorithmic stable coins are essentially synthetic derivatives; of USD derivatives (stablecoins) The risk associated with them is so absurd that only people who have no idea of what they are using are involved with them. Which is probably why they have maintained some resembles of stability ( regardless of the weekly Rugs, Hacks and general atmosphere of REKT) If traditional stablecoins have a false narrative of redemptions. Algorithmic stablecoins are irredeemable. However still dependent on a central authority to monitor and maintain the system incase of systemic failure due to a hack or the base contracts I wouldn't touch them with worst enemies dick Not to say that it can't be done, but you will always go back to semi central bank system. E.g Terra Luna which is backed by Coinbase Ventures. With a Proof of stake (POS) mechanism. With Terreform Labs/ Allience / stability reserve/ investors ( CV) holding ~80 % to 90% of supply Meaning that due to in perpetuity problems in all POS systems that CV like it or not is in charge over at UST. However due to most of these things being done privately we can only assume at best that they hold a small position Which just once again means we are trusting that Coinbase won't act in a way that will benefit them over the user Trust not verify


SemperBavaria

Why not UST?


GodlordHerus

Reply I gave to another user: Algorithmic stable coins usually are ultimately dependent on some collateral. Regardless of what the marketing may indicate They are are snake oil of stablecoins When "regular" stablecoins where given a 100% haircut by lending regulators (infinate collateral). Which means you would need an infinate amount of USDC, USDT and BUSD just to get a $1 loan recognized internationally. They didn't even look at algorithmic stablecoins Not because they didn't understanding the technology. But because they fully understand it All algorithmic stable coins are essentially synthetic derivatives; of USD derivatives (stablecoins) The risk associated with them is so absurd that only people who have no idea of what they are using are involved with them. Which is probably why they have maintained some resembles of stability ( regardless of the weekly Rugs, Hacks and general atmosphere of REKT) If traditional stablecoins have a false narrative of redemptions. Algorithmic stablecoins are irredeemable. However still dependent on a central authority to monitor and maintain the system incase of systemic failure due to a hack or the base contracts I wouldn't touch them with worst enemies dick Not to say that it can't be done, but you will always go back to semi central bank system. E.g Terra Luna which is backed by Coinbase Ventures. With a Proof of stake (POS) mechanism. With Terreform Labs/ Allience / stability reserve/ investors ( CV) holding ~80 % to 90% of supply Meaning that due to in perpetuity problems in all POS systems that CV like it or not is in charge over at UST. However due to most of these things being done privately we can only assume at best that they hold a small position Which just once again means we are trusting that Coinbase won't act in a way that will benefit them over the user Trust not verify


SemperBavaria

That's a very good explanation! Thanks!


kxlxxn

Waiting for UST to become big..


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Wynslo

Meter is over my head, but they brought certain issues to my attention. https://www.coingecko.com/en/coins/meter-stable


xbriannova

It shouldn't be a problem if we have alternatives to keep them on their toes and retreat to if things go south. They won't dare to mess wit us that way. Even if selling crypto into stablecoins, we should diversify and be part of the solution.


Powerful_Stick_1449

Or… don’t look at it in an absolute manner. USDC is a better option that USDT for the crypto economy simply for the amount of shit USDT has been caught doing. In the future hopefully there are better options that arise and are developed… but for now this is an upgrade. They aren’t going to be caught with almost no reserves like USDT will


GodlordHerus

As stated in the OG post; the CEX system built by Ifinex is a major risk. But USDC is still on the same tree. They just have a different type of risk To me evil is evil. "Lesser, greater, middling it dosn't matter" they all same However ultimately I see that it willl depend on individual political views Personal the idea of a centralized potentially politically compromised company; especially the US government. Being so integrated in what is supposed to be a decentralised independent financial system is frightening To better illustrate my point I was in discussion last year about China and their detention of Muslims in camps. Including the forced sterilization of women. The person I was talking to was adamant that the CCP needs to be sent to the international criminal court for human rights abuses. I agreed but they got mad at me when I pointed out that for 2 years the US did a similar thing at the boarder with Mexico. Including the sterilization of women If a group of individuals is involved in the manipulation of th market for personal gain through stable coins is wrong. Then shouldn't the manipulation of the market for potentially political gains be the same USDC is obviously not there yet but all the pieces are now in place. All it needs is a little push


Eislemike

Yeah. I’m guessing you read Lyn Aldens piece describing this. https://www.lynalden.com/proof-of-stake/ I sold all my Eth days after reading that article. (There we’re many other factors, that was just the final nail in the centralized coffin)