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Lesson # 4
Stablecoins & DeFi Payments
Blockchain Basics
1. What is a primary reason overcollateralized stablecoins are considered more resilient than algorithmic ones?
A. They use AI to automatically adjust the peg
B. They rely on fiat reserves held in banks
C. They are backed by assets exceeding the value of the issued stablecoins
D. They have faster transaction speeds
2. Which of the following is a major cause of stablecoin depegging?
A. High gas fees on the network
B. Sudden increase in miner activity
C. Loss of confidence or failure in collateral reserves
D. Too many wallets using the same address
3. Why do stablecoin liquidity pools typically carry lower impermanent loss risk?
A. They are protected by on-chain insurance
B. Their prices remain close to each other
C. They only use wrapped tokens
D. They are not affected by trading volume
4. What is a potential drawback of using a centralized stablecoin?
A. You can’t earn any yield
B. Transactions take longer to confirm
C. The issuer can freeze your funds or blacklist addresses
D. It requires mining to issue new tokens
5. Which approach helps reduce reliance on a single stablecoin in a DeFi portfolio?
A. Keeping funds only on Layer 1
B. Using purely algorithmic models
C. Diversifying across collateralized and decentralized options
D. Converting stablecoins to NFTs