Stablecoins – Is this time really different?
By Life Finance Blog  •  May 15, 2022
Unless you have been living under a rock, you’d probably know about the collapse of the Terra Luna (LUNA) cryptocurrency and the USD Terra (UST) stablecoin in the past week. While these cryptocurrencies are not the first to blow up or fail, they are certainly the largest and most spectacular so far! And part of the reason that this collapse is so spectacular is because UST is a stablecoin, pegged at a value of US$1, and used to facilitate other cryptocurrency transactions as well as other decentralised finance (DeFi) operations like lending, borrowing and liquidity staking. The recent events and the reasons for them are reported elsewhere, but what is of greater interest is the promise of DeFi and stablecoins, and whether this time is really different from other currency crisis episodes in traditional finance (TradFi) history.
To infinity and beyond!

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By Life Finance Blog
The Life Finance Blog is a blog which seeks to explore, educate and elucidate our understanding of financial issues in living the life we want.

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