# Insuring against the risk of stablecoin runs

**URL:** <https://forum.celo.org/t/insuring-against-the-risk-of-stablecoin-runs/3576>\
**Category:** Community\
**Created:** [May 16, 2022, 11:32pm UTC](https://forum.celo.org/t/insuring-against-the-risk-of-stablecoin-runs/3576 "2022-05-16T23:32:53Z")\
**Posts on this page:** 1\
**Showing post:** 41

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**Author:** ![markbarendt](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/markbarendt/32/6778_2.png) [@markbarendt](https://forum.celo.org/u/markbarendt)\
**Post date:** [May 22, 2022, 3:47pm UTC](https://forum.celo.org/t/insuring-against-the-risk-of-stablecoin-runs/3576/41 "2022-05-22T15:47:42Z")

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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](https://forum.celo.org/t/ensuring-celos-survival-avoiding-a-death-spiral-request-for-ideas/3629):
>
> 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…

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