Tether: Why We're Discontinuing EUR₮ and What’s Next

[cryptofriendly]

I don't have as much hedonistic cravings as in my‍ 20s though, and stuff doesn't make me happier than I am.

I'd prefer income creating⁠ assets instead of liabilities, but even they come with a caveat - they take up⁤ my time. Money means just freedom to spend my time as I choose to, instead⁣ of selling that limited and most valuable resource for money. All I really want is⁢ to be able to do what I want with my time until I perish.

I guess that 8% loss is the price I'll have to pay. And who knows, I︀ might be able to acquire some bargains during the next recession.

 

[cryptofriendly]

I just read more about XSGD, being the first stable coin complying with⁠ the travel rule......thanks, but no thanks.
Seems like CBDC is disguise.

USDC it is then.⁤ Same same but different, at least for now.

 

[rss]

At 8%/year it only takes 10 years to cut your buying power in half (-46.3%).‌

Cash is trash, only cash out what you are going to invest in other income-producing‍ assets, you don't need 50 years of expenses as your emergency fund...

 

[JackAlabama]

well yeah after all it comes out of singapore which is the new wef / oecd‍ darling. So hard pass for me there.

well yeah.. gotta swallow that lemon.⁤ But you could buy some gold and make peter schiff happy, its much less volatile.⁣ (I sometimes do that).

 

[gab1]

Opinions about DAI instead of USDT or USDC? It seems they're hedged more diversely.

 

[YoungLansk]

Another luna disaster bond to happen in the future
It can‍ be depeged easily

Others can be frozen easily .. There is no perfect stable solution⁠

 

[Mercury]

Maybe the relevant question is: How many years accounting‌ inflation, debasement and a high security margin can someone last before spending it all?
I see no point dying with more than necessary among all personal accounts/wallets.

 

[Martin Everson]

In a battle of USDT versus BTC I would take BTC every time. I don't‌ trust Tether at all.

The day may come when US government makes a move on‍ Tether and asks them to freeze all USDT addresses [not just a couple] or stop⁠ all Tether redemption's. Every holder with a claim will be asked to come forward with⁤ KYC, tax compliance and source of funds info etc. You can imagine in such a⁣ situation a large portion of USDT will go unclaimed 😉.

 

[intlman]

StraitsX (the‍ issuer of XSGD) are arseholes to deal with. Random account closures, frozen funds for weeks⁠ without explanation.

Thanks but no thanks.

And this is Singapore, which is basically an island⁤ of "compliance heroes". Was quite happy to leave the little red dot.

 

[JackAlabama]

Yeah, thats the correct way‍ to state this.
that is very possible and i see that as the likely outcome. But i dont︁ think this move is imminent.
Like with banking, US will try to pull in all︂ funds it can (burden everyone else with the kyc nonsense but exempt itself).

 

[OKboomer]

Unlike UST, DAI is not backed by a random token (LUNA) created by the⁠ stablecoin issuer, but is rather backed by a liquid decentralized asset (ETH). How would that⁤ be similar to LUNA?
i know they also partially stuff DAI with USDC at the⁣ backend though, but DAI unlike USDC does not have a freeze function.

 

[aragon]

Interesting idea. Is anyone planning to do this, or already did it during a past bear‌ market?

FYI, there's a new stable coin: USDe aka Ethena. Has anyone considered it yet?‍

 

[JackAlabama]

well it may or may not happen. Sometimes‍ stuff like this works out but for most it doesnt.
nah, with hayes aka the bitmex razor shilling it, id be careful.

 

[rss]

My first reaction was exactly the same, I was also sure it would‌ collapse just like UST/Luna, but when you dig more into it, it does look relatively‍ """safe""".

https://mirror.xyz/0xF99d0E4E3435cc...1/cUa8Y-LHi6eZYa08xOib5kl0af4ifez9F6b5UFbPOdQ

 

[JackAlabama]

The product is a short / long eth position while⁠ pocketing the yield. A synthetic stable dollar purely based on crypto without the need for⁤ real world assets.
bitmex razor provides some good insight and knows the game clearly but⁣ that is not a given for the product to be good for endusers in case⁢ a new ferrari or more bubbly water is needed.

The q is what will happen︀ when the funding goes negative over a long period. Someone has to pay this. Maybe︁ it will be implementing negative yield and you cannot withdraw for a long time (if︂ i recall correctly, the contract allows to change the withdraw window, so you can get︃ shafted with negative rates for a while).

Also with the current admin, it looks more︄ likely to stash inflation into the stablecoin market (bitcoin dollar) than having such a synthetic︅ product which does not create demand at all for such debt instruments. So usdt/c is︆ preferred, at least for the time being.

yeah it looks pretty good and you need︇ to dig deep into it. We had a indepth look into it some time ago,︈ before coming to the conclusion to pass on it.

 

[rss]

Currently it‍ has a 7 days withdraw lock, in the contract it can be set up to⁠ 3 months max.

It's pretty much an on-chain version of what Binance⁢ is doing with BFUSD

 

[JackAlabama]

3months of negative interest rates‍ can cause some damage.