I am largely in stables throughout this market downturn, specifically BUSD. From my DD, it is clear that solely erc-20 BUSD is the stablecoin issued by Paxos, regulated within the state of New York and totally backed by money and equal in FDIC insured financial institution accounts https://paxos.com/2022/04/07/busd-issued-by-paxos-on-ethereum-vs-busd-on-the-bnb-smart-chain/
Now there are many controversies surrounding the steady cash in the course of the merge. The extremely hypothetical and impossible worse-case eventualities claiming stablecoins on ETH chain might ‘keep caught’ within the ETH good contracts perpetually or lose their peg as a result of potential PoW fork, adverse funding and different issues with the stables on DeFi protocols.
Simply making an attempt to resolve which chain to stay to with my busd in the course of the merge. The way in which I see it, in idea increased technological threat is related to ERC-20 BUSD than with BUSD on Binance Good Chain. However then once more, the depeg on erc20 BUSD would imply depeg on BSC Busd too – since there’s just one worth/ticker of Busd. Plus, as talked about above, solely erc-20 is regulated and insured.
So the one threat I see is that completely unlikely situation the place ALL erc20 stablecoins ‘break down’ in the course of the Merge. What your strategy to this?
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