component of a RToken, and overnight there is a systematic issue where Circle's reserves are frozen, USDC is no longer redeemable for fiat. Where do you get the extra $1 from?
That's counterparty risk. It's a real risk. USDC would begin trading at a discount to $1 immediately because there is a risk the collateral is non-recoverable and there will be a "run on the bank"
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