With the successful launch of Terra 2.0 it’s time to look ahead and make Terra again what it was used for: an L1 where native stablecoins are the dominant factor for developing dapps on Terra. Even with a big network effect on Terra, an algorithmic stablecoin still can enter a death spiral. And unfortunately, we all know this the hard way now. BUT, that doesn’t mean the vision of Terra, where a stablecoin is the center of the blockchain, was wrong. And that’s why we should focus on bringing the stables back! But (for now) overcollateralized (unless someone finds a better and safe alternative). The biggest con about overcollateralized stables compared to algorithmic stablecoin is that they can’t scale as fast and are vulnerable to liquidation risks. So, these are things we need to work out further to make it go mainstream. But the utility for Terra could become what it was again if we could use it for fees and stables like the collateralized variant of UST would be used in liquidity pools and other protocols. I hope this topic will create some creativity and stimulate the urgency to create a stablecoin on Terra. If you have any good additions, go ahead in the comments.
I suggest you to go for a reality check on twitter @FatManTerra and
It seem you live in a fantasy world
I can get behind coins backed by gold, not fiat, which only gives more power to TradFi. @BoB_Kal, Fiatman is TradFi posing as DeFi.
I’m talking about decentralized-overcollateralized stables btw. Collateralized by crypto. And it should exclude centralized stablecoins in the smart contract like USDT.