Can UST situation happen to djed also or it is

Question

COTI - Currency of the Internet

b j

Can UST situation happen to djed also or it is

better designed and prepared for it?

#coti #cryptocurrency #english

0

10.05.2022

7 ответов

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V8_SCBTRAON_GĐ_PHUCNH10

I am also worried like you, hope the CEO will have an improvement, good plan for Djed

0

10.05.2022

Zippy Zoro | Resolute Node

Not all algorithmic stable coins are the same, One has formal methods and the other is more of a "hope this works" approach UST is backed by BTC which they have to sell to to keep the peg. the more they sell the more the market panics and people sell depegging even more it's a vicious circle that only works in a calm market or one going up. Anyone can sell BTC so their reserve is worth less and less, making it harder to keep the peg as they run out of funds. DJed is backed by Shen between X4 and X8 ratio, If the ratio was to go lower than X4 burning of Shen would be blocked to keep the peg, / reserve ratio If the ratio were to approach going above X8 minting of Shen would be blocked to protect Shen holder rewards.

0

10.05.2022

Homehacker

Zippy Zoro | Resolute Node
Not all algorithmic stable coins are the same, On...

UST is backed by Luna with an algorithm but BTC reserve was to add additional support against fast moves as the algorithmic approach could not adjust too fast moves in addition to people's panicking. It's like an additiona humane element added against humane factors that took the Luna down too.

0

10.05.2022

Zippy Zoro | Resolute Node

Homehacker
UST is backed by Luna with an algorithm but BTC re...

It is now, But up till yesterday 3Billion of reserves were in BTC and only 300Mil were in Luna,. https://datastudio.google.com/u/0/reporting/b31cc9e5-c54c-4418-a6ce-b332c57e82e9/page/4YBqC?s=or-T7NeGLew their current reserves at less than 200Mil They had more faith in BTC than Luna which is why they spent their treasury on BTC. They still burn Luna for UST purposes. Anyway DJED/SHEN fixes this. I guess we should all be concentrating on the better solution DJED It will be interesting to see how people take to not being able to mint DJED or burn/mint SHEN in times of extreme volatility. (burning of Djed should always be allowed AFAIK)

0

10.05.2022

Kuldeep

Zippy Zoro | Resolute Node
It is now, But up till yesterday 3Billion of rese...

One must understand DJed is not for traders (only)..plan is to loan out loans vis micro finance and liquiditz protocols such as liqwid finance in African nations. No one gives shit about traders. Investers mostly won't like to sell just because of market volatility and even if they do then go for USDC.none is stopiing

0

10.05.2022

Zippy Zoro | Resolute Node

Kuldeep
One must understand DJed is not for traders (only)...

Yep I see many Djeds in the future (that's why this one is called DjedUSD and not just Djed). due it it being algorithmic it can be backed by anything. Ada for now but who knows what a version Djed will be backed by in the future. And I'm using Djed as the name of the protocol for the algorithm as shorthand.

0

10.05.2022

Chuck Noris Nephew · Accepted Answer

Chuck Noris Nephew

I think no

0

10.05.2022

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