All in Letters

On The (in)Stability of Stablecoins

This piece aims to prove that the only workable stablecoins are those that are composed of a simple (weighted) average of assets, more commonly called a “basket” or simply, “diversification of your portfolio”. It encourages regulators to focus on the topics of rehypothecation and commingling so as to not bring the failure modes of traditional finance into our crypto-financial future.

-By Bob McElrath