Insuring against the risk of stablecoin runs

[markbarendt]

So I have started a thread to work toward a proposal to address this.

Ensuring Celo's Survival - Avoiding a death spiral - Request for Ideas

As demonstrated by the Terra/Luna failure, the risk is real. Terra/Luna’s failure seems to have demonstrated clearly that once a ‘bank run’ gets going, the death spiral sets in very quickly, then the reserve gets blown out chasing a lost cause: the customer’s and developer’s money gets lost to the bears feeding. An apt analogy for this is a fighter jet pilot with the ability to eject, but who refuses to eject, because they think they can regain control: way too many pilots have been lost that w…