c-crypto-member

are stablecoins as the future of crypto a bad thing?

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the current stablecoin marketcap is $237.49B

not a huge part of the crypto as a whole YET, but i foresee it being the main way people interact and use it as time goes on

the question is - is it a potential contagion considering how centralized all stables are?

or does present adoption outweigh future centralization risk?



Community strategy at @offchainlabs,  contributing to /arbitrum

1 - Centralization = Single Points of Failure

A regulatory crackdown (e.g. U.S. Treasury targeting Circle or Tether) could freeze assets and impact all DeFi protocols relying on them (e.g. Curve, Aave, Maker vaults).

Most DeFi protocols hold stables in treasuries, yield strategies, or collateral. If redemptions freeze or assets get blacklisted — we’re looking at another “March 2020”–style event.

2. Bank-style runs possible

If doubts arise (as with Terra/Luna or USDC’s SVB scare in 2023), even centralized stables can depeg short-term.

Liquidity drains and “flight to USDT” could cause fractures.