An obvious, but so far intractable, solution to this problem would be a decentralized stablecoin. Or ideally stablecoins. Unfortunately, most of the top DeFi-native stablecoins depegged along with USDC, a centralized and censorable asset that makes up a significant portion of supposedly decentralized asset’s backing. LUSD, for instance, tied to the Liquity protocol, has been the most successful, truly decentralized stablecoin – unfortunately, it’s not that stable (it was trading above $1.01 at time of writing).
Centralized Stablecoins Are Problematic. Is a Decentralized Alternative on the Way?
