In the aftermath of the recent (CRYPTO: LUNA) debacle, which led to tens of billions of dollars of losses, (CRYPTO:Ethereum) co-founder Vitalik Buterin shared two thought experiments on evaluating if an algorithmic stablecoin is “truly a stable one.”
In a blog post, Buterin states that a greater level of scrutiny on Defi financial mechanisms, especially those that try very hard to optimize for capital efficiency, is highly welcome and that the greater acknowledgment that present performance is no guarantee of future returns (or even future lack-of-total-collapse) is even more welcome.
