Quote from: TastyChillySauce00 on July 25, 2025, 04:11:34 AM

Ethereum is a big chain, there are tons of tvl and if there's no traditionally pegged stablecoin people will make delta neutral hedge ones.
Even before the hype of stablecoin ethereum were also having many things going on in their chain.

Remember that there are decentralized stablecoins out there which derive its value from the working of the market such as over collateralization.

Does over collateralization guarantee that a stablecoin like Dai does not lose its peg and wont crash to $0 like Terra stablecoin?

What happens when the collateral loses it value? Does Dai buy USA government bonds and if they buy bonds then that means there is people entity in Dai and if that is the case then how is Dai is decentralized when there is people employees working for Dai that can freeze your Dai balance wallet in cold storage wallets.