The Rollup Why ETH-Backed Stablecoins Will Beat Bank-Backed Stablecoins with Michael Svoboda
Feb 10, 2026
Michael Svoboda, CEO of Liquity and longtime DeFi builder focused on ETH-backed, governance-minimized stablecoins. He contrasts treasury-backed and sovereign ETH-backed models. He outlines peer-to-peer credit and how holders earn yield directly. He explores ETH/LST resilience, distribution economics behind $10T volume, and trade-offs between freedom and regulation.
AI Snips
Chapters
Transcript
Episode notes
Stablecoins Will Bifurcate Into Two Models
- Two stablecoin models will dominate: regulated, treasury-backed commodities and sovereign, crypto-backed on-chain dollars.
- Middle-ground hybrid models add counterparty risk and will likely fade as regulation clarifies market structure.
Sovereign Stables Offer Distinct Risk Profile
- Sovereign stablecoins avoid bank and custody counterparty risks by being code-run and crypto-backed.
- They grant stronger user control, immutable mandates, and full on-chain transparency.
Choice Between Trusting Humans Or Code
- Both regulated treasury-backed and code-backed sovereign stablecoins can be safe depending on what users trust: humans or code.
- The market benefits from having both options available for different user needs.