Yesterday, I wrote about why USDf is safe even in a down market. Some people asked, 'So how much can it withstand?' So I ran a stress test based on my own assumptions, lol. Case 1) Bitcoin drops 10-20%, which is a typical correction. This level can be managed by the 110% over-collateralization buffer and arbitrageurs. I believe the peg won't break at all. Case 2) Bitcoin drops 30-40%, which is a serious crash. In such a sharp decline, a de-pegging can naturally occur. Even algorithmic stablecoins like DAI can experience temporary de-pegging in such markets. However, thanks to the over-collateralization system, I believe that even if there is temporary de-pegging in such a crash, recovery is ultimately possible. Case 3) Bitcoin drops more than 50%, which is a black swan event. But is it even meaningful to assume such a situation? It's like the end of the world, lol. If more than 80% of the collateral assets are crypto, USDf could face a de-pegging that is impossible to recover from due to a chain liquidation. We need to remember the UST incident. There is no 100% safe algorithmic stablecoin. I just hope Falcon accumulates a lot of over-collateralization! @FalconStable