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Daily Flash | Algorithmic stablecoin should have a reserve pool at least three times the market cap；The only way Terra can get out of this dilemma is to develop L1
Daily Flash | Algorithmic stablecoin should have a reserve pool at least three times the market cap；The only way Terra can get out of this dilemma is to develop L1
13 May 11:25
Today's Topic - Algorithmic stablecoin should have a crypto asset reserve pool at least three times the market cap
In an online interview, Tether CTO Paolo Ardoino expressed his views on the panic against UST caused by the recent decoupling of UST.
Ardoino believes that it may be feasible for algorithmic stablecoin in the range of tens of billions of dollars, but if it is to carry tens of billions of dollars of liquidity, the robustness of algorithmic stablecoin is unknown. "I think algorithmic stablecoins should have a crypto asset reserve pool of at least three times the market cap, although this will affect growth; in contrast, Tether has strict dollar asset reserves, which can deal with possible black swans."
Do you think Tether is stable?
Today's Chart - Bitcoin lightning network capacity exceeded 3800 BTCs, a record high
According to 1ml’s latest data, the capacity of the Bitcoin lightning network has exceeded 3800 BTCs, a record high. When this article was written, it was 3800.34 BTC, approximately $111139142.31, representing an increase of 5% on the 7th; In addition, the number of Bitcoin lightning network channels reached 84446, representing a decrease of 2.1% on the 7th, and the number of nodes reached 37208, representing an increase of 2.42% on the 7th. Bitcoin lightning network capacity hit 3400 BTCs on February 2, 2022, which means an increase of more than 400 BTCs in the past three months.
Today's Influencer - Larry Cermak: Terra's only way out of this dilemma is to turn to USDT/USDC and develop L1
Larry Cermak, vice president of Block research, said on twitter that LUNA is less than $0.05, which is actually just providing exit liquidity for UST holders - the number of bad debts is endless. Even so, it only sells for $0.05. Liquidity will soon begin to dry up at this rate, and Terra must actually reverse this decision anyway.
"I think the only way out of this dilemma is to temporarily abandon UST, turn to USDT/USDC and fully develop the L1 ecosystem. Then, as L1 grows, to promise to fund collateral or repay UST’s bad debts. If this does not happen, both sides can return to zero," Cermak said
Hot events yesterday - #DreamBack 519, #BlackRock denied involvement in Terra's collapse
Bitcoin hit its lowest price since 2020, and Ethereum dreamt back 519 close to $1700
BlackRock stated that it was not involved in Terra's collapse
Australia's first Bitcoin and Ethereum spot ETF were officially launched
Peter Brandt, a senior trader, predicts that $27K is the bottom range of Bitcoin
The largest digital bank in Latin America will allocate 1% of its net assets to Bitcoin to provide cryptocurrency services
Author: Gate.io Researcher Byron B. Translator: Joy Z.
* This article represents only the views of the researcher and does not constitute any investment advice.*Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
ETH/USDT
-2.65%
BTC/USDT
-0.66%
LUNA/USDT
-4.74%
USDC/USDT
+ 0.01%
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