Historical retrospective · Stablecoins
Stablecoin stress showed that secondary-market pegs can diverge
The 2022 market turmoil demonstrated that a stablecoin’s exchange price can move away from its target when redemptions, liquidity or confidence are impaired.
Market makers and exchanges can support trading near a peg, but only issuer or protocol mechanisms define formal redemption rights.
The episode made liquidity and redemption terms central to stablecoin risk comparisons.
A charted $1 price is not the same as an unconditional right to redeem one token for one dollar.
Primary source
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