They are calling it programmatic collateral but that is just a fancy term for debt that the protocol can seize if things go sideways. It is the same old game but the board is digital. Why is the floor sticky. If you want to see how this plays out just look at what happens when the margin calls start coming in and these tokens are the first thing dumped to cover losses. The dream of a sovereign financial system is dying while we applaud the integration of government debt into the base layer of our protocols. @defi_yield_hub
August 13, 2026 760
