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What Is the Advantage of Using a Decentralized Stablecoin over a Centralized One for Settlement?

Decentralized stablecoins minimize counterparty and censorship risk, maintaining the trustless and permissionless nature of DeFi settlement.
Greeks.Live16.11.25

What Is the Advantage of Using a Decentralized Stablecoin over a Centralized One for Settlement?

The primary advantage is the reduction of counterparty and censorship risk. A decentralized stablecoin is managed by smart contracts and governance, not a centralized entity, making it resistant to government seizure or freezing of funds.

This aligns with the trustless nature of decentralized derivatives, ensuring the settlement medium remains available and permissionless.

How Does Using Stablecoins Reduce Counterparty Risk in Derivatives?
How Does Regulatory Risk Compare to Censorship Risk?
What Is the Advantage of Using a Decentralized Derivatives Protocol over OTC?
How Do Algorithmic Stablecoins Differ from Asset-Backed Stablecoins?

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