It's just an observation: stablecoin issuance tracks defi total value locked very closely, at least until May 2021. It makes sense because a lot of defi contracts have stablecoins on one side. So when we think about stablecoins, I argue that we should not just think of them as deposits, but as conduits. And that means that to understand stablecoins we have to think about DeFi.
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.
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
It's just an observation: stablecoin issuance tracks defi total value locked very closely, at least until May 2021. It makes sense because a lot of defi contracts have stablecoins on one side. So when we think about stablecoins, I argue that we should not just think of them as deposits, but as conduits. And that means that to understand stablecoins we have to think about DeFi.
and what is exactly "unattended contracts " ?
Programmable contracts, also known as "smart" contracts. The point is that they execute whether or not anyone is paying attention.
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.
This is a very interesting question, and one which will require some thought.