What keeps stablecoins stable?
نویسندگان
چکیده
Using trades between the stablecoin treasury and private investors, we quantify how improved arbitrage design stabilizes price of dominant stablecoin, Tether. We identify two 2019 reforms: migration Tether from Omni to Ethereum blockchain decentralization issuance. These reforms increased investor access trading with treasury, reducing absolute size peg deviations by half. Further evidence for importance is present in stability mechanism DAI creation authorized merchants pegged coin WBTC.
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ژورنال
عنوان ژورنال: Journal of International Money and Finance
سال: 2023
ISSN: ['0261-5606', '1873-0639']
DOI: https://doi.org/10.1016/j.jimonfin.2022.102777