> Why does it need to be sustainable? The APR can simply lower once the high APR... | Hacker News

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		Closi on May 10, 2022 \| parent \| context \| favorite \| on: UST Stablecoin Loses Dollar Peg > Why does it need to be sustainable? The APR can simply lower once the high APR is no longer sustainable. At which stage, people with savings withdraw funds because of the lower interest rate and the Ponzi scheme collapses.

charcircuit on May 10, 2022 [–]

>the Ponzi scheme collapses

The only thing that collapses would be the APY. Everyone can still withdraw their full deposit.

Closi on May 11, 2022 | [–]

Their deposit has been loaned. No free lunch here…

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