JP Koning: Regulation Could Actually Help Tether

Much of tether’s erosion can be attributed to the huge growth of decentralized finance, or DeFi, the set of financial tools created on the Ethereum network that allow for borrowing, lending and trading. DeFi tools require safe and stable collateral as grist. When DeFi began to take off in 2020, these tools began to ingest significant quantities of stablecoins.