When does it stop being a stablecoin?
In “traditional finance”, we’ve got something called a derivative. In short, a derivative derives it’s value based on some underlying asset. In the “new finance” world of blockchain and DeFi, we’ve got something called a stablecoin, where the price of the coin is pegged to some underlying asset. So a stablecoin is just a derivative then, no? Usually people think of coins pegged to the USD when they hear stablecoin, but it doesn’t need to be. It could be pegged to anything, just like a derivative could use any underlying asset and definition on top. ...