The recent surge in decentralized finance (DeFi) lending platforms has sparked a heated debate about the role of stablecoins in the ecosystem. Are they a necessary evil, providing liquidity and stability to the market, or a recipe for disaster, creating a bubble that's waiting to burst?

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Stablecoins are a crucial component of DeFi lending platforms, as they provide a reliable store of value, enabling lending and borrowing. However, their over-reliance on collateral may lead to market instability if not properly managed.