Beyond the Peg: Synthetic Dollars Redefine Stablecoins

Stablecoins have exploded in popularity over the past five years, becoming a cornerstone of crypto adoption. However, beneath this growing market lies a potential problem: reliance on centralized models that could compromise decentralization and transparency. 2022’s TerraUSD crash serves as a stark reminder of this issue. The recent collapse of Silicon Valley Bank further highlighted these vulnerabilities, exposing the fragility of traditional stablecoins based on fiat backing.