DeFi

Anyone worried about liquid restaking having unforeseen risks like Terra/Luna?

Investing in AI & Web3 via Generative Ventures
https://www.genventures.xyz/

Ex Chief Economist & CMO @Consensys

Yep, worried everyone's greed is gonna lead to the same mistake

But how? 

As in any algo coin, there was a death spiral: depegged UST was redeemed for Luna -> Luna was sold -> Luna price dropped -> more Luna was minted for each UST.

Is there any similar risk in restaking? 

I certainly worry about it thou. There ain't no free yield.

Content at /zerion Safary 🦁 member.  KB ∞. Memecoin  ̶e̶n̶j̶o̶y̶o̶o̶r̶ masochist.

I think LDS are different but certainly have some risks. That said, stables poise the biggest risk yet sound projects have demonstrated their resilience and found PMF. 

Still watching tether

Growing Sherlock.xyz to secure crypto | Building Astral.global to enable location based DApps | Sense making at Kernel | Dad | Memes

Looks to me like Tether lucked into capital appreciation to actually back their assets. But it's too distant from my knowledge base to really take a view. 

Future of France will be USDT on Tron. What a world.

By the time you're printed $1B+ of financial instruments, investing them in risk free stuff to support a 50 person team seems like the right bet

Crazy how much TVL is on tron, tbh. Based on my analysis, these stablecoin providers are making safe bets buying us treasuries & other low risk RWAs. MakerDAO is doing this and seeing great results.