Mags
@mags
bank runs are solely a feature of trust-based systems, rooted in holders’ distrust in a fin services co if holders depend on verified data, trust is irrelevant, and bank runs don’t happen tl;dr system can only be stable if overcollateralized AND liquid AND data-based… i.e. DeFi https://i.imgur.com/IqKix9G.jpg
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Rob McMackin
@robm
Curious; is it not fundamentally the same thing happening when a trustless coin goes to zero? (E.g luna, all the dead coins)
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Mags
@mags
It’s different for coins-that-act-as-shadow-equity (which have equity dynamics - i.e. bad business can go bankrupt / coin can go to 0) vs. Defi financing or stablecoins (which have balance sheet driven dynamics - i.e. it’s about the underlying asset quality)
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