Stablecoins also provide crypto investors with a “safe haven” when cryptocurrency price volatility is high. So when cryptocurrencies go on a wild roller-coaster ride, as they have in recent months, demand for stablecoins rises. This tends to push them off their pegs, which rather destroys their purpose. So when people are cashing out of risky crypto into nice, safe stablecoins and USDC is starting to look expensive, Jeremy Allaire cranks up the printing presses.
Why Stablecoin Interest Rates Are So Damn High
