Top Tweets for #Feth

> inb4 "muh USDC yield", that's not DeFi Would algorithmic stablecoins fall under this? IMO no (ie. algorithmic stablecoins are genuine defi) Easy mode answer: if we had a good ETH-backed algorithmic stablecoin, then *even if* 99% of the liquidity is backed by CDP holders who hold negative algo-dollars and separately positive dollars elsewhere, the fact that you have the ability to punt the counterparty risk on the dollars to a market maker is still a big feature. Hard mode answer: even if an algorithmic stablecoin is backed by RWAs, if it is overcollateralized and diversified to the extent that it would still be collateralized if any single RWA failed (ie. max share of any individual backing asset <= overcollateralization ratio), then that's also still a meaningful improvement to the risk properties experienced by a holder. I feel like that sort of thing (ideally the former, failing that the latter) is what we should be aiming more towards. And then from there, move away from the dollar as the UoA, and toward some kind of more generalized diverse index. Though of course, current "put USDC into Aave" gadgets do not qualify under either of my categories.