Figure 3 - uploaded by Ariah Klages-Mundt
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Black Thursday in March 2020. (a) ∼ 50% ETH price crash (image from OnChainFX). (b) liquidation price effect on Dai DEX trades (image from dai.stablecoin.science).
Source publication
We develop a model of stable assets, including noncustodial stablecoins backed by cryptocurrencies. Such stablecoins are popular methods for bootstrapping price stability within public blockchain settings. We demonstrate fundamental results about dynamics and liquidity in stablecoin markets, demonstrate that these markets face deleveraging spirals...
Contexts in source publication
Context 1
... releasing the original form of this paper in June 2019, massive liquidation events around Black Thursday in March 2020 provide additional evidence of deleveraging effects in the Dai market. Figure 3a depicts a ∼ 50% ETH price cash on 12 Mar. 2020, which precipitated a cascade of cryptocurrency liquidations. ...
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