Odaily Planet Daily News ✨ The founder of the decentralized lending platform Curve Finance, Michael Egorov, recently discussed in an interview that the potential risks of over-collateralized stablecoins are not only related to reserve risks but more importantly, to the geopolitical risks brought about by government regulation 🌍. Egorov pointed out that the underlying assets supporting collateralized stablecoins, such as cash deposits from financial institutions and U.S. Treasury bills, are vulnerable to asset freezes and seizures.

He suggested that achieving maximum decentralization through algorithmic stablecoins can effectively address these potential sanctions 💡. These stablecoins do not rely on physical cash deposits or short-term cash equivalents, but operate entirely on-chain, and in principle, remain fully traceable.

Egorov emphasized that truly decentralized stablecoins provide investors with an "algorithmic guarantee," ensuring that funds do not evaporate due to asset seizures 💼. In contrast, stablecoins backed by physical fiat assets lack this assurance. We remain optimistic about the future of Bitcoin 🚀.