Interesting also to think what this means in terms of hierarchy of money in the DeFi space. Seems to me - at least at first sight - upside down: if SCs are higher in the money hierarchy than "smart contracts"(which are presumably some form of collateralized borrowing/lending), but the latter drives the former than smart contracts can determine the issuance of SCs, but availability of SCs cannot constrain smart contracts. Maybe there isn;t any hierarchy, but then there is also no ultimate settlement money.
Stablecoins and DeFi
I don't mention SCs specifically but I've discussed systemic risk mitigation in DeFi with special reference to insurance here (in case of interest): https://twitter.com/mlphresearch/status/1372154033314656259
Dear Neilson; TVL and stablecoin amount, I dont understand this relationship
Interesting also to think what this means in terms of hierarchy of money in the DeFi space. Seems to me - at least at first sight - upside down: if SCs are higher in the money hierarchy than "smart contracts"(which are presumably some form of collateralized borrowing/lending), but the latter drives the former than smart contracts can determine the issuance of SCs, but availability of SCs cannot constrain smart contracts. Maybe there isn;t any hierarchy, but then there is also no ultimate settlement money.