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1. just an actual husbear (guizzy@pleroma.guizzyordi.info)'s status on Tuesday, 10-May-2022 10:46:29 EDT just an actual husbear
   Is UST going to make it? It's starting to inch closer to its peg, but even if it regains it, why would anyone consider it as valuable as the currency it's pegged to, to say nothing of collateralized stablecoins, if it can't absorb shocks in the short term and risks triggering liquidations if used as collateral?
   1. lnxw48a1 (lnxw48a1@nu.federati.net)'s status on Tuesday, 10-May-2022 10:53:48 EDT lnxw48a1

      in reply to
      The whole concept of algorithmic stablecoins is new to me, so I'm still trying to comprehend it. But traditional collateralized stablecoins have the theoretical advantage that one can liquidate them and get the equivalent value of fiat currency back.
      
      As long as the backing organization hasn't cheated, or at least isn't suspected of cheating, they should stay fairly close to their pegged value.
      
      Sort of like people in the 1980s buying fine 0.999 gold Kruggerands with the idea that they could be melted down and traded at the underlying value of the metal should the coin's value diverge too much.