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.
it seems right now most of stablecoin are already anticipating such incident to occur again with timed redeem and backed with t-bill, and so on.
but I would only trust stablecoin provider that at least got high TVL and isn't lowkey shady, the fact that when I hold a stablecoin essentially means I got no benefit of capital growth and have no APY means i'm risking my money for absolutely no reason if I'm holding stablecoin coming from inferior stablecoin provider than the one that's already in the market for long.