Post
Topic
Board Altcoin Discussion
Re: What do you think about USDS stablecoin?
by
fikrett
on 24/01/2025, 09:51:34 UTC
Or it could be a terrible way to lose money if USDS drops below $1, in fact the consequences would be catastrophic for SKY governance tokens which would be sold off in an attempt to reclaim the $1 peg. In other words, after what happened with LUNA it is hard to trust any new stablecoin pair.

LUNA was a classic bank-run scenario.
Rapid withdrawals were the cause of the destabilization. And once we see that high APY somewhere, we surely need to reconsider our odds of going into such a project.