# That’s true.

By [TyxJake](https://paragraph.com/@tyxjake) · 2022-05-11

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That’s true. Using your gov token to back your stablecoin is prone to death spirals. When confidence in the peg drops, so will the value of your collateral.

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*Originally published on [TyxJake](https://paragraph.com/@tyxjake/that-s-true)*