What keeps stablecoins stable? We shed light on this question in our August 5th Research Report with Dr. Ganesh Viswanath-Natraj, an Assistant Professor of Finance at Warwick Business School. While several factors make stablecoins stable, proper collateralization is among the most important.
Ensuring appropriate collateralization through audits, typically referred to as “Proof of Reserve” in the cryptocurrency space, however, can be costly in terms of time and money. Fortunately, however, blockchain transparency can be leveraged by smart contracts and oracles to automate these auditing processes.
Enter Chainlink’s Proof of Reserve. Using a network of decentralized oracles, Chainlink’s Proof of Reserve provides smart contracts with the data they need to automate the process of calculating collateral in real-time rather than forcing users to trust audits made by custodians.
More about Chainlink’s Proof of Reserve: [ Ссылка ]
“What Keeps Stablecoins Stable?” working paper from the National Bureau of Economic Research (NBER): [ Ссылка ]
Learn more about Chainlink:
Website [ Ссылка ]
Chainlink Twitter [ Ссылка ]
Smart Contract Twitter [ Ссылка ]
Telegram [ Ссылка ]
Discord [ Ссылка ]
#chainlink #stablecoins #web3 #smartcontracts #economics #economicsofweb3
