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Myles Snider @myles_snider
, 8 tweets, 4 min read Read on Twitter
Interesting week for stablecoins.

Recently BitShares bitUSD went into "global settlement," meaning that users can no longer borrow bitUSD from the chain, but they can convert it into collateral (BTS) at the global settlement price, currently about $0.70.
From my understanding, the dollar value of the collateral backing bitUSD dipped below the outstanding supply of bitUSD, leaving all bitUSD under-collateralized. This triggered global settlement.

This is the type of black swan event that all stablecoins have to prepare for.
This is the first time that bitUSD has gone into global settlement since it was released in 2014. You can see the historical chart below.
bitCNY, which is more liquid and has a larger supply, seems to be holding up okay.

coinmarketcap.com/currencies/bit…
Many people don't know but bitUSD was the predecessor to Maker DAI.

The DAI model has evolved significantly, but there's a lot for Maker team and investors to learn here. I think the main thing is that it shows the weakness of a single-collateral model.
Maker also has a global settlement option, which I believe functions in a similar way.

It would also be interesting to do some analysis on the collateralization ratios that were initially used for bitUSD and how quickly the market had to move to leave them under-collateralized.
Even more interesting will be to watch to see if and how bitUSD can recover. Huge learning opportunity here for other stablecoin projects.

Follow along at stablecoinindex.com
Would love some additional input if anyone else has taken a closer look at this.

cc: @MakerDAO @RuneKek @mikeraymcdonald @reserveprotocol @nnevvinn @samkazemian @futurenomics @kaiynne
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