Originally posted by disneysteve
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they can't default on over collaterized loan..
The risks are
- regulatory risks ( government is coming hard after stable coins.. they want to fold that industry into their own banking system.. because as you can see it's a threat to the big banks.. and to be fair to the banks ..they are not allowed to offer products like these. ALthough I don't think the regulatory risk is much of a threat to the consumer.
- company risks - because they are not regulated .. and it's not that transparent.. that's why a lot of ctypto enthusiasts prefer the over collaterized loan of the smart contracts because everyone can see where the money is coming and going.
Of course the smart contracts come with their own risks, smart contract bugs , & the potential of being hacked.
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