The Backbone of DeFi: Stability in Volatility
DeFi emerged as a paradigm shift in the financial ecosystem, promising an alternate paradigm for banking. Volatility is its worst enemy. Unlike the traditional financial system that has a fiat backing for its stability, in the DeFi setting, the market can fluctuate with great severity and sometimes unpredictability. Crypto-pegged assets offer cushioning against price swings. What if the foundation of stability in DeFi were impacted? Would DeFi survive without them?