CryptoParadise
Secondary market liquidity imbalances triggered the USX de-peg incident recently. The core issue: when stablecoin liquidity fractures across different venues, traders face a tough choice—swap on DEXs and eat massive slippage, or watch your position bleed out.
Here's what should happen instead: protocols should let you redeem the underlying collateral directly, bypassing swap mechanics entirely. This native redemption route keeps you whole even when pool conditions turn ugly.
But not all stablecoin protocols operate this way. Some lack permissionless redemption functionality, leaving users trap
Here's what should happen instead: protocols should let you redeem the underlying collateral directly, bypassing swap mechanics entirely. This native redemption route keeps you whole even when pool conditions turn ugly.
But not all stablecoin protocols operate this way. Some lack permissionless redemption functionality, leaving users trap