I read a lot of stablecoin whitepapers and I never could find a stablecoin that legitimately graduates from "trust-minimized peepee poopoo garbage with sprinkles on top" to "trustless." I don't think it's possible.
the closest I ever saw was an unpegged stablecoin whose contract stares at external uniswap USDT pairs before deciding how much ETH needs to be backing it so that it has enough volatility dampening to appear stable. the whole thing can't work in a vacuum. other attempts involve simple overcollateralization of things like USDC. if they don't allow centralized stables in the collateral, they lose their peg, so they just become USDC proxies. I wonder what will happen to freezeable USDC that is being used to prop up pretend decentralized stablecoins.
goatmeal /
npub1g0…7gqpz
2025-05-20 21:06:43
in reply to nevent1q…q9su
Author Public Key
npub1g0atme30l6s65rw6ulq2cqahq9lzmpj0sejhsjcqh0azlyg5cp4qf7gqpzPublished at
2025-05-20 21:06:43Event JSON
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"created_at": 1747775203,
"kind": 1,
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"content": "I read a lot of stablecoin whitepapers and I never could find a stablecoin that legitimately graduates from \"trust-minimized peepee poopoo garbage with sprinkles on top\" to \"trustless.\" I don't think it's possible.\n\nthe closest I ever saw was an unpegged stablecoin whose contract stares at external uniswap USDT pairs before deciding how much ETH needs to be backing it so that it has enough volatility dampening to appear stable. the whole thing can't work in a vacuum. other attempts involve simple overcollateralization of things like USDC. if they don't allow centralized stables in the collateral, they lose their peg, so they just become USDC proxies. I wonder what will happen to freezeable USDC that is being used to prop up pretend decentralized stablecoins.",
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