A paper by Perry Mehrling and the BIS about stablecoins. An interesting comparison to the Eurodollar system. He identifies liquidity, not solvency, as the primary concern for stablecoins to maintain par.

A paper by Perry Mehrling and the BIS about stablecoins. An interesting comparison to the Eurodollar system. He identifies liquidity, not solvency, as the primary concern for stablecoins to maintain par. https://www.bis.org/publ/work1146.pdf

I'm interested to see if the launch of permissionless lending markets like  Morpho Blue, Euler V2, and Ajna will lead to a new wave of CDPs more focused on liquidity.