The Blockchain Trio
Tokenize
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*The Risks of Synthetic Stablecoins *
Synthetic stablecoins are tokens that employ complex and risky trading or investment strategies to maintain a stable value linked to the US dollar. An example is Athena, which uses reserves or deposits to mint synthetic stablecoins and engages in speculative trading like basis trade or carry trade. This involves shorting futures or reverse markets and buying the spot to generate yield for token holders. These strategies can pose significant risks to investors due to their speculative nature and complexity.
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