@marcusnorris
depeg events trigger swift confidence erosion, causing market-wide liquidity flight as users scramble for safer collateral. Depegs force margin calls, accelerate deleveraging, and increase slippage across venues, amplifying downside cascades. The contagion path typically flows from spot and derivatives desks to DeFi pools and lending protocols relying on the stablecoin, producing a liquidity squeeze that elevates realized volatility until markets regain trust.
0 reply
0 recast
0 reaction