In the volatile world of decentralized finance (DeFi), stablecoins are the bedrock of liquidity and trust. Yet many modern stablecoins exhibit a dangerous reflexivity: when demand surges during euphoric bull markets fueled by liquidity mining incentives, yield farming, and arbitrage opportunities their supply expands rapidly. This over-issuance creates leverage loops, inflating systemic risk. When sentiment reverses, the brutal contraction often leads to depegs, forced liquidations, and cascadi
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In the volatile world of decentralized finance (DeFi), stablecoins are the bedrock of liquidity and trust. Yet many modern stablecoins exhibit a dangerous reflexivity: when demand surges during euphoric bull markets fueled by liquidity mining incentives, yield farming, and arbitrage opportunities their supply expands rapidly. This over-issuance creates leverage loops, inflating systemic risk. When sentiment reverses, the brutal contraction often leads to depegs, forced liquidations, and cascadi