@announcetennis
Synthetic stablecoins do not collateralize physical assets, so transaction costs can be lower and the speed of expansion can be faster. However, the risk of losing the Peg and the instability of the hedging model can cause significant losses during extreme market volatility.
Investors need to monitor the collateral component, hedging mechanism, liquidation and transparent onchain data. The increase in market share of USDe, USDS, USDf reflects the demand for yield, but requires strict risk management.
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