not completely fail. The problem with UST and other stablecoins losing peg is that they don't have a 1:1 reserve. if they had it in the first place the selloff issue resulting in the loss of the peg would never have happened. maybe with this problem the stablecoin ecosystem can be better.
Yes. But even centralized stablecoins with a 1:1 reserve might lose the peg if the issuer isn't as legit as it claims to be. While Tether is the biggest stablecoin on the market, it's still lacking transparency. The issuer of the stablecoin is quite shady, unable to provide proof that Tether is really backed by USD stored in bank accounts. Without solid evidence sustaining its claim, how can we be so sure Tether will maintain the peg to "infinity and beyond"?
With decentralized stablecoins, the risk is higher because they're only backed by algorithms, or in some cases, they're collaterized by other crypto assets. Whenever they'll become widely successful in the future or a failed experiment, it's yet to be seen. As long as decentralized stablecoins have their flaws, people will continue to trust centralized stablecoins with their money. Hopefully, decentralized stablecoins will improve to make "De-Fi" bigger and stronger than ever. Just my opinion
