I don’t understand how this works, but according to [1] it’s used as collateral ...

		skybrian on May 22, 2022 \| parent \| context \| favorite \| on: Top stablecoins shed $7B in May as traders redeem ... I don’t understand how this works, but according to [1] it’s used as collateral for loans. This seems to be a form of betting on price changes? See [2]. [1] https://bam.kalzumeus.com/archive/stablecoin-mechanisms-and-... [2] https://en.wikipedia.org/wiki/Perpetual_futures