I understand that stablecoins can be stable because of the algorithm. But that's exactly what US government will try to control. Stablecoin issuers might consider moving out of US.
The European Union countries and most countries in the world are still cooperating with the United States, and since stablecoin is tied to 1 USD, there must be bank accounts and treasury bonds to support it, otherwise it is can stable but difficult to say that it is tied to 1 dollar.
LUNA worked on a different principle. The user bought a LUNA token, then received stablecoins for blocking the LUNA tokens and staked them at 20% per annum. Naturally, this caused a large increase in the price of LUNA tokens.
Any project that wants to do this will end up with the same scam.
That's why there were reserves, which were supposed to balance the value, but the ratio of the market value of UST to Luna and the insufficient reserves are what led to the movement of UST down, but it took more than a week for the price to fall between 30 and 60 cents, and therefore there was enough time for those who wanted to sell. Because he sold at a loss of 30%.
What I am trying to say is that there must be reserves, and the more cash and liquid reserves there are, the better the performance of the stable currency, and this decision makes the stablecoins more dependent on the government and afraid of it.
