Stablecoin Risks: Identifying and Mitigating Vulnerabilities

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Answers:
1) What is a common risk with fiat-backed stablecoins like USDT or USDC?
- Dependency on centralized custodians
2) What caused the TerraUSD collapse?
- A failure in its algorithmic stabilization system
3) What is one way to reduce risks when using stablecoins?
- Diversify across multiple stablecoins with transparent audits

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