The last time I wrote about a stablecoin, it failed spectacularly. So when a colleague of mine suggested I write about MakerDAO’s proposal to invest in U.S. Treasurys to back its collateralized stablecoin DAI, I was reminded of the power I wield.
I’m completely joking, by the way. I don’t take myself that seriously. But while we are on the topic of spectacular failure, we should talk about spectacular failure.
Just two weeks ago, this newsletter suggested that opaque, intertwined platforms with excessive leverage were a danger to crypto investors. That was in the shadows of the hedge fund Three Arrows Capital’s insolvency, but now Celsius and Voyager (two retail-focused yield-generating platforms) have put together restructuring plans.
Which is what you do when you’re screwed. Voyager even declared Chapter 11 bankruptcy – the “good kind of bankruptcy,” for the record (if there’s such a thing) – proving that crypto is hell-bent on playing out the mistakes of traditional finance at hyperspeed. What’s more, Blockchain.com also stands to lose $270 million from lending to Three Arrows.
Oh, and there are a handful of other not-so-great crypto things happening right now which we’ll get into, but it’s all going to (somehow) be fine.
That (and maybe more …) below.