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ml's avatar

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

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Veridelisi's avatar

Dear Neilson; TVL and stablecoin amount, I dont understand this relationship

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Daniel H. Neilson's avatar

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.

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Veridelisi's avatar

and what is exactly "unattended contracts " ?

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Daniel H. Neilson's avatar

Programmable contracts, also known as "smart" contracts. The point is that they execute whether or not anyone is paying attention.

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Marat's avatar

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.

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Daniel H. Neilson's avatar

This is a very interesting question, and one which will require some thought.

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