Designing a Stablecoin Depeg Insurance DAO

Description

Problem:

- Stablecoin is arguably the #1 DeFi product category by TVL ($150B+).

- However, most stablecoin holders carry the risk of stablecoin de-peg + other risks (smart contract risk, economic attacks, governance attacks, regulatory risk).

- As a result, mass adoption of stablecoins is bottlenecked, further sustainable TVL growth (read mass adoption) is limited because mainstream users are afraid of holding stablecoins.

This roundtable aims to explore solutions to this problem. Specifically, we aim to brainstorm three topics:

1) Can a DAO exist with a single purpose of providing protection to 100% of users (similar to FDIC), especially small holders, viable?

2) Are there mechanisms which could provide such protection? What are the limitations/constraints which could make protection is feasible to implement?

3) Bootstrapping. Is it possible to have a working product with a low price, especially during early days of a DAO?