Post
Topic
Board Altcoin Discussion
Re: How do you feel about algorithmic stablecoin staking?
by
cryptoaddictchie
on 13/05/2022, 16:29:43 UTC
After all, such high payouts to stakers must be accompanied by constant replenishment of these projects reserve funds. But what will happen if the money stops flowing in the right amount?
Exactly what happened on Luna. This incident showcase vulnerabilities of the idea of stable backed pegged with not stable cryptocurrency and also the reserved fund can be attacked by whales especially there is a leverage trading that could lower the funds or depleted once hit a threshold.