What is minting ? I don’t understand the process. We can

I dont trust the ''we lock ada in pro of a reserve for djed''. A reserve of an stablecoin should be stable. Like if u have 1 million djed nad u have 1 million $ worht of ada, that is ok. But when ada fluctuates, then the problems happen

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29.05.2022

HeptaSean

Juan GS
I dont trust the ''we lock ada in pro of a reserve...

That's why it is overcollateralised so heavily.

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29.05.2022

Fireflight

Juan GS
I dont trust the ''we lock ada in pro of a reserve...

Define "stable"? Even the dollar is not stable, due to inflation etc. It's for a reason they overcollateralize it to protect the dollar peg. Don't compare this algorithm with LUNA, since LUNA was inflationary & the backing of UST didn't use collateral, it just depended on ppl arbitraging whenever price fluctuates.

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29.05.2022

Juan GS

Fireflight
Define "stable"? Even the dollar is not stable, du...

Stable means the price of the stablecoin should be equal with the dolar. Has to be stable with the dolar. Doesnt matter if the dolar bc of inflation lose value or not. The stablecoin has to be stable with the price of the dolar. It is the same as PaxGold, wich replicates the price of gold.

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29.05.2022

Fireflight

Juan GS
Stable means the price of the stablecoin should be...

Ok, then use a fiat-backed stable coin like USDC & USDT and trust the centralization (where they can block wallets & transactions). Algo-stable coins exist for a reason: to support decentralization. You can't have a decentralized fiat-backed stable coin, since someone will always need to own & safely store the physical dollars that are backing it..

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29.05.2022

Juri Автор вопроса

Fireflight
Ok, then use a fiat-backed stable coin like USDC &...

You seem to understand djed tech very good. How you think about djed? What are your critics ?

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29.05.2022

HeptaSean

Juan GS
Stable means the price of the stablecoin should be...

You can only absolutely guarantee that if you deposit 1 Dollar for every 1 Stablecoin – like Tether – and you have to trust the entity that does that deposit – I would not do that for Tether – and the entity must under no circumstances do anything with that deposited fiat – which is total madness.

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29.05.2022

Fireflight

Juri
You seem to understand djed tech very good. How yo...

I think it's very thought out and solid. But it will still need to prove itself during high volatile times, so ppl will remain skeptical about it (especially after the LUNA/UST drama) until then. We also don't know the fee structure for shen, so a lot will depend on this as well, since it needs to be attractive for ppl to deposit ADA in the reserve pool and risk locking it up when the ratio drops below 400% (so it should give a high APY for that, higher than regular ADA staking)

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29.05.2022

Juri Автор вопроса

Fireflight
I think it's very thought out and solid. But it wi...

The only thing I understood is that ada is always limited. Coti ist always limited. Not like Luna.

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29.05.2022

HeptaSean · Accepted Answer

HeptaSean

Creation of tokens. DJED and SHEN are created/minted, when people put ADA into the reserve and destroyed/burned again, when they sell them and get ADA out of the reserve again.

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29.05.2022

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What is minting ? I don’t understand the process. We can

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