@windr I must commend you for such masterpiece you have here, a good read. I went further to make few contributions;
Participating in the stablecoin system demands that the interest rates paid by the system to users be higher than the interest rates levied by the system to users in order for there to be a mutually profitable equilibrium. A range of policies, such as establishing minimum interest rates, regulating interest rates, or providing subsidies, can help to ensure this. Interest rate policies are connected to governance assaults in decentralized stablecoins since they can be used to disrupt the system by intentionally increasing or deflating stablecoin supply.
One way to think about this is that in order for a stablecoin system to be profitable for everyone, it must charge users lower interest rates than it pays them. If the system charged greater interest rates than it paid, people would be enticed to quit, eventually leading to the system’s demise. Stablecoin systems often have some kind of interest rate policy in place to prevent this from happening, such as setting minimum interest rates, regulating interest rates, or offering subsidies. These policies serve to ensure that the system remains stable and lucrative for all parties involved.
These restrictions, however, make stablecoins with decentralized governance vulnerable to attacks. Someone could, for example, artificially boost the quantity of stablecoins by setting high interest rates and then withdrawing their coins from the system. This would cause the value of stablecoins to fall, causing people to lose faith in the system and, finally, causing it to collapse. Alternatively, someone might artificially deflate the quantity of stablecoins by setting low interest rates and then withdrawing their coins from the system. This would raise the value of stablecoins, causing consumers to lose faith in the system and, eventually, causing it to collapse. In either scenario, such attacks can be disastrous to a stablecoin system and lead to its demise.
Stablecoin systems must have strong governance mechanisms in place to prevent these kind of attacks from occurring. These techniques should be designed to identify and prevent attacks from occurring in the first place. Furthermore, users must be aware of these hazards and actively monitor the system for any indicators of an approaching attack.
I hope this meets your expectations