Rich by Coin

Solana co-founder Toly has proposed an underlying stablecoin architecture in which stablecoins can be frozen only by court order. He suggested incorporating layer-two stablecoins like Drift.usdc and kamino.usdc, with each development team designing its own freezing and unfreezing protocols to respond to hacker attacks.

Toly argued that if stablecoins can be frozen by entities other than judges approved by the US Senate, they cannot be considered true dollars. This framework could spur other teams to build faster-responding stablecoins tailored for DeFi.

Solana co-founder Toly has outlined a stablecoin architecture in which freezing powers would be exercised only through a court order. He envisions wrapping base stablecoins with layer-two variants such as Drift.usdc and kamino.usdc, with each development team designing its own freezing and unfreezing protocols for each vault to address hacker attacks. Toly argues that if any entity beyond judges approved by the US Senate can freeze stablecoins, they cannot be considered true dollars. The proposal could spur other teams to build faster-responding stablecoins tailored for DeFi.