S2E25｜After the USDC’s dean crisis. let’s talk about stablecoins. Defi ecology and open finance

On March 12, 2020, when Maker decided to introduce the regulated stablecoin USDC, USDC began to occupy the stablecoin market in large quantities and became the core asset of Defi today. Three years later, on March 12, 2023, when Silicon Valley Bank broke out, this move that year made the entire Defi ecosystem fall into crisis with USDC’s dean. The USDC dean incident originated from the Silicon Valley banking crisis. Circle, the founder of USDC, put $3.3 billion in cash into Silicon Valley banks, accounting for about 8% of the entire Circle dollar reserves. While everyone was running Silicon Valley banks, panic about Circle in the crypto circle was also spreading. In just two days, investors cashed out more than $2.6 billion in USDC, and the USDC exchanged for USD once broke down to 0.87. In this issue, let’s talk about how the USDC run has affected the entire Defi ecosystem? How did USDC rise and share the world of USDT? Where will a compliant regulated stablecoin, and the regulation itself, take the cryptocurrency industry? [Special anchor] Liu Feng, partner of BODL Ventures, former editor-in-chief of Chain News (Twitter: @fishkiller) [Guest] Yang Mindao, founder of dForce (Twitter: @mindaoyang) Pan Chao, former director of Maker Foundation [You will hear] 03:10 How did the Silicon Valley banking crisis affect USDC? 04:18 Nothing happened to the wild route USDT, but the safest stablecoin USDC is the anchor? 07:34 0.87 Entering a dangerous threshold may trigger bad debt transmission risk 10:57 Thrilling weekend: Before USDC released its risk exposure, Curve's huge asset changes 13:59 Ideal decentralized finance cannot create a perfect stablecoin 15:42 Explanation of terms: What is DAI 17:45 312 watershed: Maker introduced USDC, USDC occupied the stablecoin market 22:20 Three years later, the problem of 312 broke out: When a large number of USDC became Defi's core assets 23:59 Looking back at the changes in cryptocurrencies' decade-long trend, stablecoins have gone from being a big rebellious to being indispensable 26:40 The impossible triangle of stablecoins: decentralization, stability and capital efficiency 27:35 Capital efficiency: Why 312 introduced USDC instead of USDT? 32:50 USDT has a more encrypted spirit? Diversified counterparties and liquidity 33:50 When U.S. Treasury bonds replace US dollar stablecoins and become the ultimate stablecoin, will the Federal Reserve become the final bottom-up? 35:45 The stablecoin anchored by US dollar assets: Decentralized finance is just an ideal 35:55 ​​Maker invests in US Treasury bonds: get rid of reducing the risk of single-point centralization of single collateral 38:23 DAI is particularly widely used in Argentina and has become a substitute for the US dollar 39:40 Controversy: Defi should not be called decentralized finance, but actually open finance 43:00 The core difference between open financial system and traditional finance: open network and free entry and exit 45:46 If open finance is used to constrain Silicon Valley bank management, it may be another outcome 47:30 Defi currency protocol and flexible response are several orders of magnitude higher than the real financial scenario 48:15 USDT risk: Is it at the key node of self-provement of innocence? 52:10 Regulatory loopholes: Not all BUSDs are regulated 53:22 Comparison of the ten years before and after the financial crisis in 2008: Tightening supervision and monopoly Internet 58:27 The Internet is too big to fail, but the 1 trillion US dollars Crypto industry is positioned awkwardly 59:40 Ethereum is no longer the original Ethereum after it is converted to POS, and its anti-regulation has become weaker [BGM] Mumbai — Ooyy [Team] Producer｜Hongjun late stage｜Amei [Found us here] Chinese user: Apple Podcast｜Xiaoyu Overseas user: Apple Podcast｜Google Podcast｜Amazon Music｜Spotify Twitter: @Web3_101 [Guest comments only represent individuals, and this episode does not constitute any investment advice]