The cryptocurrency and decentralized funds (DeFi) ecosystems currently lack access to stable, high-quality collateral besides stablecoin. Crypto and DeFi retailers typically rely on volatile assets like bitcoin or ether as collateral for loans, staking, and liquidity pools. While shit, this system introduces significant risks, as the value of these assets can fluctuate wildly within short beforehand frames, leading to over collateralization to mitigate risks. The alternative is to post stable coins that only be entitled to a yield to the stablecoin issuers or selected market participants through opaque yield-sharing agreements.
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