Hi can comeone please confirm if my assumption is correct?

Question

Hi can comeone please confirm if my assumption is correct?

If I were to mint $1 of $DJED (when launched), $1 of ADA is locked up + due to over collateralise between $ 4 - 8 of ADA is also locked up by SHEN holders, meaning at least $5 worth of ADA locked up (ignoring DCA price over time) to mint that $1 of DJED?

#coti #cryptocurrency #english

0

29.05.2022

9 ответов

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T C Автор вопроса

HeptaSean
Basically. Since you cannot command people to hold...

I'm trying to understand how much of ADA is being locked up. Just assume an entity with unlimited fiat and they want to mint $1m in DJED, They would have to buy $1m in ADA to mint $1m of DJED, on the reserve side, they would also have to buy SHEN (with ADA being locked up) so to mint $1 of DJED, will at least $5 worth of ADA be locked up?

0

29.05.2022

HeptaSean

T C
I'm trying to understand how much of ADA is being ...

Yep, same people buying the DJED and the SHEN wouldn't make much sense, though. In order to get 1 million worth of DJED into circulation, 4 million worth of ADA have to be locked up in the reserve, so 3 million worth of SHEN by – supposedly – other people. Yeah, that's the interesting question if enough people will want to put their ADA into SHEN.

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29.05.2022

T C Автор вопроса

Sorry but why only $4m worth of ADA? If a user can only mint DJED when there are between 4 - 8X worth of ADA locked up in SHEN + The $1m that is required to mint DJED, shouldn't this be at least $5m?

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29.05.2022

Fireflight

Oh, right. Should be 5 mill $ indeed

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29.05.2022

HeptaSean

T C
Sorry but why only $4m worth of ADA? If a user can...

The reserve does have to contain 4× the worth of the DJED in circulation minimum. If you buy/mint DJED, you also put ADA into the reserve. So, it's enough if the SHEN holders have put 3 million into it. After you have put 1 million, there *are* 4 million in it.

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29.05.2022

HeptaSean

Fireflight
Oh, right. Should be 5 mill $ indeed

Nope.

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29.05.2022

Fireflight

HeptaSean
The reserve does have to contain 4× the worth of t...

Ohhh 🤯 Of course 😅😁

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29.05.2022

T C Автор вопроса

HeptaSean
Nope.

ok so the requirement of 4X can include the cost to mint DJED itself so in this case 3X is enough because another 1x is being added to the pool

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29.05.2022

HeptaSean · Accepted Answer

HeptaSean

Basically. Since you cannot command people to hold SHEN, you are only allowed to buy/mint DJED if there already are enough ADA in the reserve from SHEN holders before the transaction.

0

29.05.2022

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Hi can comeone please confirm if my assumption is correct?

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