Walter Hernandez, a Research Fellow at ESF and Carlo Campajola, Head of Tokenomics at ESF and a Lecturer in Artificial Intelligence and Financial Analytics at UCL, discussed the following key points about Stablecoins while presenting their research on “The effects of transparency on stablecoin liquidity during the collapse of the Silicon Valley Bank”, conducted alongside Jiahua Xu, Paolo Tasca and Carlo; where they analysed USD-USDT liquidity pools on decentralised exchanges during the crisis to identify the effects of transparency.
Key topics:
- the world of stablecoins and their pivotal role in the crypto ecosystem
- different types of stablecoins, their backing systems, benefits, use cases, and their rise as a growing asset class after the #DeFi summer of 2020-2021
- risks associated with algorithmic stablecoins, illustrated by the Terra-Luna crash
- touched on market concentration and regulatory uncertainties
The full recording is available here
For an in-depth look at their findings, check out the report here - https://arxiv.org/abs/2407.11716
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