First of all, I truly like the vision and mission of Celo which is good for the world.
I and my friends are planning on making Dapp about metaverse + NFT, which needs stablecoin for the payment in the Dapp. We are thinking about developing it on Celo blockchain, however, we have some concerns about long-term stability of cUSD.
Today, cUSD marketcap is less than $100 million. The reserve and collateral backed the cUSD seems to be OK (2-4 times of cUSD marketcap).
Assuming, cUSD marketcap increases to $USD billions with Celo, BTC, ETH backed. The collateral/reserve may be only 1-2 times of CUSD marketcap. If there is a market clash and the values of Celo, BTC, ETH are 80% down as happened this year, the reserve/collateral can become less than cUSD marketcap.
May cUSD not stable and encounter the similar problem as what happened to Terra/Luna/UST this year?
Sorry for asking this concerns. I am not expecting Celo, cUSD to have any problem. I am really interested in Celo and want to see Celo grows in the long future, that’s why I want to really understand “CELO”.
Thank you very much.