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Hybrid — Some projects like Frax Finance use a hybrid approach to find a balance between these issues. The peg to USD is algorithmically maintained, but they also have reserves available to handle periods of extreme volatility and market demand. This strategy seems the most likely to survive long term.
Exploring Stablecoins
The prices of cryptocurrencies are extremely volatile. In order to mitigate this volatility, stablecoins pegged to other stableassets such as the USD were created. Stablecoins help users hedge against this price volatility and allow for a reliable medium of exchange. Stablecoins have since quickly evolved to be a vital component of DeFi that is piv
... See moreSze Jin Teh • How to DeFi: Beginner

Coinbase users have now borrowed $400M USDC at ~5% rates in just a few months since launching
Feedback has been strong, with one recent story of someone who would’ve otherwise sold their BTC to fund a home improvement project but was able to borrow against it instead and stay invested while still getting the funds to us... See more
Bitcoin
sari and • 26 cards
Parabol
parabol.fi