You know which stablecoin didn’t go to zero?
Direct from the desk of Dane Williams.
Solana’s Cashio stablecoin has gone to zero, but Hive Backed Dollars (HBD) keeps trucking on.
The Cashio stablecoin went to zero overnight, seeing the Solana based project join a long list of failures.
(Damn it, I missed the good screenshot without the ridiculous green percentage rip.)
But do you know which stablecoin didn’t go to zero?
An actual layer-1 algorithmic stablecoin solution, housed on a truly decentralised blockchain.
Something that I continue to encourage those with stake in our blockchain to support taking to the next level.
What happened to Cashio?
The Solana based algorithmic stablecoin project called Cashio was essentially attacked by what's being called an infinite glitch exploit.
This hack saw the protocol’s total value locked (TVL) plummet from over $28 million, all the way down to just the final $579,701 left from people that hadn’t noticed yet.
And the Cashio stablecoin?
Well as you can see on the CoinGecko screenshot above, it went to zero.
Backed by a liquidity pool on Solana based market making platform called Saber, the Cashio stablecoin is able to be pegged to the USD thanks to this USDC and USDT backing.
Investors provide liquidity with USDT and USDC, then can mint their Cashio stablecoin.
But this particular infinite glitch exploit or hack, whatever you want to call it, allowed the manipulation of the platform’s smart contracts to mint an infinite supply of the Cashio stablecoin, without providing any liquidity in return.
So the hacker simply exchanged these freely printed so called stablecoins for actual USDT and USDC in the platform’s liquidity pools.
Easy.
And what was the team’s response?
“Please do not mint any CASH,” the team wrote on Twitter.
“There is an infinite mint glitch. We are investigating the issue and we believe we have found the root cause. Please withdraw your funds from pools. We will publish a post mortem ASAP.”
Oh awesome, did you hear that guys?
The team is onto it.
Phew.
Well I guess that means we can put our trust back into unknown algorithmic stablecoin projects built on centralised blockchains again.
Business as normal, guys.
Hive Backed Dollars - The best algorithmic stablecoin?
While I keep talking about Hive Backed Dollars being the safer, more superior algorithmic stablecoin due to its layer-1 status on the Hive blockchain, there is still a problem
HBD is somewhat hamstrung by a lack of liquidity.
In its current form, it just isn’t possible for investors to take a meaningful HBD position without experiencing extreme price slippage.
The liquidity just isn’t there to do so.
As a result, I continue to encourage those with a HIVE stake to support measures that will allow HBD to go to the next level and fulfil its potential.
If Hive Backed Dollars wins, then not only does HIVE win.
But humanity wins too.
It’s as simple as that.
Best of probabilities to you.
Posted Using LeoFinance Beta
