> There's other stable coins with similar mechanisms like Synthetix / SUSD which are also risky, but AT LEAST in their case they require 400% overcollateralization in SNX to mint SUSD.
Apples and oranges, really. There is no redemption mechanism in sUSD that results in uncontrolled printing (i.e. devaluing) of SNX (the underlying collateral), unlike UST/LUNA.
sUSD is more akin to DAI (i.e., over-collateralized debt-based stablecoins) than to UST.
Apples and oranges, really. There is no redemption mechanism in sUSD that results in uncontrolled printing (i.e. devaluing) of SNX (the underlying collateral), unlike UST/LUNA.
sUSD is more akin to DAI (i.e., over-collateralized debt-based stablecoins) than to UST.