“Even outside of crazy hypotheticals where you build a stablecoin to track a Ponzi index, the stablecoin must somehow be able t
o respond to situations where even at a zero interest rate, demand for holding exceeds demand for borrowing,” Buterin wrote. “If you don’t, the price rises above the peg, and the stablecoin becomes vulnerable to price movements in both directions that are quite unpredictable.”
The Stablecoin Collapse Needs a Back-to-Basics Approach, Says Ethereum Co-Founder
