Hacker News Reader

how do you know the stablecoins are actually collateralized?

https://crypto-anonymous-2021.medium.com/the-bit-short-insid...

The fourth word on Tether's wikipedia page is "controversial". Nobody is under the impression that it's fully collateralized. Would you care to make the case that a different, trusted stablecoin isn't fully collateralized?

DAI specifically is collateralized with ETH using smart contracts - it's over 100% collateralization is incontrovertible.

DAI is a trustless stablecoin collateralized by eth. OP literally linked it's whitepaper and this was your reply

Sure, it's collateralized by ethereum - the problem with that of course is that ethereum is a completely manipulated price driven up by billions in falsely collateralized tether.

So effectively, you've linked DAI to the value of a coin that is set by tether. That being the case, the actual value of the collateral is in question.

That's why I replied that way.

Reply on news.ycombinator.com