From the recently publisnhed FAQ Is this saying that users may

Question

From the recently publisnhed FAQ Is this saying that users may

not be able to get back $1 in ADA when attempting to burn their Djed? (the above sentence that starts with However,)

If it's not saying that can someone please explain what that part means?

#coti #cryptocurrency #english

0

30.05.2022

8 ответов

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HeptaSean

The “However” is the unlikely case that the 400% overcollateralisation is not enough and it drops below 100% (which corresponds to a rather sudden drop of ADA value by 75%).

0

30.05.2022

HeptaSean

mahendra bhat
I think it is saying not all the time you can burn...

You can *always* burn DJED. The three other actions – minting DJED, minting SHEN, burning SHEN – are restricted if the reserve ratio is not in the right corridor.

0

30.05.2022

Zippy Zoro | Resolute Node Автор вопроса

mahendra bhat
I think it is saying not all the time you can burn...

You can always burn Djed so it can't be that AFAIK Minting new Djed and Burning /Minting of Shen can be blocked but burning of Djed can always happen regardless of reserve. Of course I could be wrong but I don't think I am

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30.05.2022

HeptaSean

It is unpegging and you can't prevent it, only make it unlikely. Source: I've read and understood the Djed paper. But feel free to wait for the admins.

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30.05.2022

Zippy Zoro | Resolute Node Автор вопроса

HeptaSean
It is unpegging and you can't prevent it, only mak...

lol, I've also read the Djed paper and the 2 other papers from the other projects which Djed is based on , (SigmaUsd, AgeUsd) I know all of the scenarios in which Djed can depeg.

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30.05.2022

HeptaSean

Zippy Zoro | Resolute Node
lol, I've also read the Djed paper and the 2 other...

…, but then you already know that what we both said is true. Burning DJED is never restricted and it can unpeg, it is just unlikely. Why do you need the admins of a Telegram group for that?

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30.05.2022

Zippy Zoro | Resolute Node Автор вопроса

HeptaSean
…, but then you already know that what we both sai...

Yep just read the faq again and that does appear to be a depeg warning, seems very Blaise and not explained in detail. If reserve below 100% burning of djed may be blocked or users get less than $1 if burning.

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30.05.2022

mahendra bhat · Accepted Answer

mahendra bhat

I think it is saying not all the time you can burn DJED.. When the reserve is less than 400 percent, you may have to wait...

0

30.05.2022

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