I’ve been seeing a lot of discussions about the attractive yields of stablecoins - is nobody really concerned about the risk of these investments? Didn’t historically most pegged currencies backed by gold and USD reserves fail the test of time or am I missing something that makes stablecoins any different?

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I don’t think anybody understands the risks tbh. I certainly dont. I know a number of programs have failed already, but it SEEMS like there’s enough collateralization and auditing for major coins like usdc and gusd - risk seems more with the platforms and who they lend your coins to, or other systemic risks like government regulation.

Coins like USDT or UST or anything else, i really have no idea how risky they are because it’s a little harder to understand what’s under the hood or what their plans are in worst case scenarios.

likesmart

USDC and GUSD seem reliable. I don’t like the FUD around USDT and the rates on UDT feel unbelievable

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I’ll admit I don’t know enough about it, but I’m also only putting amounts that I am ok with losing.

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Coins backed by the major exchanges (USDC, GUSD) are rock solid imo - collateralized with dollars so always redeemable. USDT is a big question mark, although they’ve been reducing commercial paper backing and replacing with hard assets. UST is interesting - they’ve started backing a portion of it via BTC due to liquidation and bank run risks - definitely make or break for UST/Luna but I still think the 20% you can earn on Anchor outweighs the risks atm.

likeuplifting

The risks are not sufficiently understood by most which is why the yields are so high.

I'm confident personally that USDC can hold its peg.

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