Exercise 9: Stablecoin Analysis and Comparison

⏰ Time Investment: 30-45 minutes 🎯 Goal: Understand stablecoin mechanisms

📚 Required Reading Integration 📖 Primary: Lesson 9: Stablecoins and Stability Mechanisms

🔍 Phase 1: Knowledge Check (15 minutes)

1. What is the Stability Trilemma?

• Your answer: _________________________________

2. How do fiat-collateralized stablecoins work?

• Your answer: _________________________________

3. How do crypto-collateralized stablecoins work?

• Your answer: _________________________________

4. Why did Terra/Luna collapse?

• Your answer: _________________________________

5. What are the trade-offs of each stablecoin type?

• Your answer: _________________________________

📊 Phase 2: Comparison Table (15 minutes)

Compare USDC, DAI, and algorithmic stablecoins:

• Decentralization

• Stability

• Capital efficiency

• Risks

💡 Phase 3: Use Case Analysis (15 minutes)

Determine which stablecoin type is best for:

• Daily trading

• Long-term savings

• DeFi protocols

• International payments