I am principally in stables throughout this market downturn, particularly 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 secure cash through the merge. The extremely hypothetical and impossible worse-case eventualities claiming stablecoins on ETH chain may ‘keep caught’ within the ETH sensible contracts without end or lose their peg because of the potential PoW fork, destructive funding and different issues with the stables on DeFi protocols.
Simply attempting to determine which chain to stay to with my busd through the merge. The way in which I see it, in concept increased technological danger is related to ERC-20 BUSD than with BUSD on Binance Sensible 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 danger I see is that absolutely unlikely situation the place ALL erc20 stablecoins ‘break down’ through the Merge. What your strategy to this?
