Paxos mistakenly mints $300T PYUSD on Ethereum, citing tech error

theblock.co

10 pointsthm3 comments

> PYUSD's price momentarily deviated from its $1 peg but quickly stabilized following the burn.

Why is there even a market for trading between asset-backed stable coins and USD? Shouldn't issuer always buy it back for nominal price?

Generally this is the way issuers avoid having to KYC everybody.

A few trusted parties is enough to maintain the peg through arbitrage

I believe you can sell your USDT back to tether. Although I haven’t heard the same about other stablecoins.