Why did usdx cash spill?😡😤

If the IBC transfers were working quickly you can buy 1500 UST with $1000 on an exchange then mint 1485 USDX and swap t0 1300 BUSD, and repeat resulting in USDX getting sold.

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10.05.2022

CryptoDaz (Darren)

Farhad
Do they not have a different mechanism?

Yes, UST is completely different but by fixing USDX and UST at $1.00 with no price feed means this loophole opens when UST looses it's peg. To prevent it you would need to temprarily disable minting of USDX with UST

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10.05.2022

Scott Stuart

CryptoDaz (Darren)
Yes, UST is completely different but by fixing USD...

Yeah there is a very small amount of UST in kava system compared to overall. Do has bigger problems to worry about 😅

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10.05.2022

Mr Harley (I will never DM first)

Scott Stuart
Yeah there is a very small amount of UST in kava s...

Nice stopping over

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10.05.2022

CryptoDaz (Darren)

Scott Stuart
Yeah there is a very small amount of UST in kava s...

The bigger issue for USDX price would be an inflow of UST to KavaChain for the sole purpose of minting USDX and immediately selling it to buy more cheap UST, if done with large amounts the price of USDX will naturally follow UST. It seems clogged IBC UST movements has limited this

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10.05.2022

DL

Does this mean usdx price will continue to drop in value as a result?

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11.05.2022

CryptoDaz (Darren)

DL
Does this mean usdx price will continue to drop in...

It is a concern

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11.05.2022