Collateral Portfolio Optimization in Crypto-Backed Stablecoins

arXiv:2405.08305v1 Announce Type: new
Abstract: Stablecoins - crypto tokens whose value is pegged to a real-world asset such as the US Dollar - are an important component of the DeFi ecosystem as they mitigate the impact of token price volatility. In crypto-backed stablecoins, the peg is founded on the guarantee that in case of system shutdown, each stablecoin can be exchanged for a basket of other crypto tokens worth approximately its nominal value. However, price fluctuations that affect the collateral …

arxiv asset case collateral crypto cs.cr defi ecosystem guarantee impact important optimization portfolio real stablecoins token tokens value volatility world