Patri Friedman Retweeted Tushar Jain
I agree with this. I think stablecoins are a potentially valuable part of the crypto ecosystem, but all the algorithmic ones I've seen are vulnerable to short attacks. Reserved & audited is the way to go for now. Algo grabs mindspace mainly b/c it's a neat puzzle.https://twitter.com/TusharJain_/status/996785737340243968 …
Patri Friedman added,
Tushar Jain @TusharJain_
1/ Asymmetric incentive to short is a huge problem for all seignorage share style stablecoins like @basisprotocol.
The scariest thing about being short is the risk of a squeeze. But if I short a stablecoin, my downside is capped at just the interest rate on my borrow.
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10:26 AM - 19 May 2018
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