<p>With the SEC clamping down on <a href="https://chaindebrief.com/why-the-secs-crackdown-on-crypto-could-benefit-these-3-stablecoins/" rel="noopener noreferrer nofollow">Binance’s stablecoin BUSD</a>, we are once again reminded of the reason Bitcoin was birthed. While Ponzi stole the show in 2022, a strong message of censorship resistance and decentralization is at the core of the world of cryptocurrency.</p><p>However, for a truly decentralized economy to work, a decentralized stablecoin is required, which we have yet to fully reach. Although projects like<a href="https://chaindebrief.com/frax-finance-fractional-algorithmic-stablecoin/" rel="noopener noreferrer nofollow"> Frax</a> and <a href="https://chaindebrief.com/why-the-secs-crackdown-on-crypto-could-benefit-these-3-stablecoins/" rel="noopener noreferrer nofollow">DAI</a> have emerged, they are either held back by capital inefficiency or the need for more centralized stablecoins such as USDT for collateral.</p><p>Furthermore, a decentralized, fully algorithmic<a href="https://chaindebrief.com/sec-sues-do-kwon-claims-he-cashed-out-100m-in-bitcoin-from-luna-foundation-guard/" rel="noopener noreferrer nofollow"> stablecoin like UST eventually collapsed </a>due to overzealousness and the <a href="https://chaindebrief.com/what-is-kujira-orca-luna/" rel="noopener noreferrer nofollow">nascency of its risk market.</a></p><p>While we may not be able to create such a product just yet, the introduction of a proper risk market to hedge the downside of just risks could be a huge stepping stone for not just a decentralized stablecoin, but also for many liquid-staked derivatives out there.</p><h3 id="a-href-https-chaindebrief-com-betting-on-stablecoin-death-spirals-with-y2k-finance-rel-noopener-noreferrer-nofollow-find-out-our-full-analysis-here-a"><a href="https://chaindebrief.com/betting-on-stablecoin-death-spirals-with-y2k-finance/" rel="noopener noreferrer nofollow">Find out our full analysis here. </a></h3>

Betting On Stablecoin Death Spirals With Y2K Finance

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