Stablecoins could benefit from "reverse overcollateralization" as a safeguard against extreme events. This mechanism would involve holding additional reserves beyond the standard collateral, dynamically adjusted to absorb shocks from market volatility or black-swan events. Unlike traditional overcollateralization, which protects against undercollateralization, reverse overcollateralization would build a buffer to maintain peg stability during crises, such as sudden depegging or liquidity shortages. By preemptively allocating extra assets—potentially in diverse forms like cash, bonds, or crypto—this approach could enhance trust and resilience. However, it may increase operational costs and reduce capital efficiency, requiring careful balancing to remain competitive. Implementing such a measure could reassure users and regulators, fostering wider adoption while mitigating catastrophic risks.