Stablecoins look calm on the surface. Pegged. Predictable. Safe.
But Vitalik is warning that beneath the $1 illusion are fault lines, fragile collateral, slow governance, and quiet centralization waiting for stress to expose them. They work in good markets. Under pressure, they crack.
As banks rush into tokenized money and TradFi builds on-chain rails, the message is clear: stablecoins aren’t magic infrastructure.
They’re leveraged systems that must survive panic, correlation, and human behavior.
Ignore the risks, and DeFi doesn’t just wobble, it cascades.
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