In theory, 1011 could happen again. USDe is just a small detour, not the underlying issue. And market makers don’t have the authority to take over during extreme market conditions...
Because, as of now, the crypto market still doesn’t have a truly meaningful cross-exchange, systemic joint backstop strategy.
Exchanges operate independently—margin, liquidity, and liquidation mechanisms are fragmented from one another.
Once extreme conditions return, a liquidity crisis in one market can be quickly transmitted to other exchanges through forced liquidations, going concern shortfalls, and a contraction of market-making liquidity.
As long as exchange infrastructure hasn’t changed, the possibility of similar systemic stampedes will always remain.
$BTC $ETH #btc #eth
Because, as of now, the crypto market still doesn’t have a truly meaningful cross-exchange, systemic joint backstop strategy.
Exchanges operate independently—margin, liquidity, and liquidation mechanisms are fragmented from one another.
Once extreme conditions return, a liquidity crisis in one market can be quickly transmitted to other exchanges through forced liquidations, going concern shortfalls, and a contraction of market-making liquidity.
As long as exchange infrastructure hasn’t changed, the possibility of similar systemic stampedes will always remain.
$BTC $ETH #btc #eth
