Hi everyone, I am writing a letter to the community regarding SVB bank and how this impacts Hera.

11 Mar 2023, 16:41
https://www.circle.com/blog/deepening-our-partnership-with-blackrock#:~:text=Through%20our%20partnership%20with%20BlackRock,80%25%20short%20duration%20U.S.%20Treasuries. Hi everyone, I am writing a letter to the community regarding SVB bank and how this impacts Hera. From our analysis, we have observed that the USDC asset has lost 3.3B/40B, or 8.25% of its collateralization in the SVB bank bond meltdown. This represents one of the six major banks it does business with. Systemically any base pair for an asset has a risk when paired in a liquidity pool. What does this mean for the future of Hera? Although there is a slight chance that the financial system that is tied to any stable backed pairs has exposure to more banks with such faults, there hasn't yet been any clear signs that this issue will spread or not be backstopped by the very large organizations that facilitate them. If you look mathematically at the price USDC is down on its peg, 8.8%, it is near identical to the ratio stated in the article regarding SVB. For now, Hera will remain with a USDC pair, and in the event of any updates that gives us further reason to change, we may be open to a short term incentivized period for HERA/USDT or HERA/wETH pair liquidity granted specific market conditions. We believe that Circle should be able to resolve this issue, and recommend any people that use Defi to always proceed with due diligence. This is not financial advice. Best Regards, Christian Hera BD Lead