The majority of people in crypto draw an intensely bright line between what Luna is doing, what Tether has done, and what Dai or even centralized fully backed stablecoins do. Maybe you should take off the sunglasses.
Using Terra (a centralized ponzi chain) to attack all of crypto is peak cope; its peak strawman. If merkle trees aren't so hard to understand you would put your effort into thinking about how stable stable coins work rather than using the market swings to affirm your biases.
> Using Terra (a centralized ponzi chain) to attack all of crypto is peak cope
Most of the cryptocurrency ecosystem is scams, this is just another data point demonstrating that fact. Frankly, your equivocating defense sounds more like "peak cope" than the comment you're replying to.
Even DAI is kind of shady, if I understand correctly. The main mechanism they use to regulate demand and try to ensure the 1:1 exchange is the Dai Savings Rate, which is interest you earn by locking Dai into the savings smart contract. But right now, I don't think there's many places where you can actually use Dai to buy/sell goods and services, so the only "exit" is to sell that DAI to other people.
Considering the few places where you can actually use cryptocurrencies, even stable ones like DAI, it's weird that there's so much demand and volume. Operations on DAI have amounted to almost a billion dollars in the last 24h according to Coinbase, how much of that comes from trading and how much from other economic transactions?
