# kaal:claim:3782216-030

**Claim.** Cryptocurrency backed stablecoins are even more expensive than fiat backed ones, because stability is being sought with far more unstable collateral.

**Type.** mechanism  **Support.** argued

**Holds when.**

- crypto collateralized designs such as MakerDAO

**Source quote.**

> Cryptocurrency-backed tokens are even more expensive than fiat backed tokens, because the stability is achieved with much more unstable cryptocurrencies.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Finance (DeFi)* (2021), Basic Design

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

**Verify.** sha256 of source PDF `f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Decentralized%20Finance%20%28DeFi%29.pdf

**Failure mode.** crypto collateral volatility  (family: valuation-and-pricing-failure)

**Topics.** tokenomics

**Keywords.** stablecoins, overcollateralization, makerdao, collateral-volatility

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3396522-012
- restates: https://wulfkaal.github.io/claims/3402701-004

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.