What if ADA is down by 75%, what will happen

Question

COTI - Currency of the Internet

Charles Hoskinsons

What if ADA is down by 75%, what will happen

to djed?

#coti #cryptocurrency #english

0

30.05.2022

15 ответов

8 просмотров

HeptaSean

Prince || COTI
If you will read the documents carefully, you will...

That is not true. Directly from the Djed paper. In the second case of that minimum expression, Djed *will* depeg. It is just very unlikely.

0

30.05.2022

Zippy Zoro | Resolute Node

HeptaSean
That is not true. Directly from the Djed paper. In...

2nd part of what I wrote above as far as I can tell. If the price is "set" below a dollar then to everyone else it's a depeg. No matter if the smart contract or code is programed to work that way. Again chances of it happening are super supper low. But it's better we have these discussions here as the cardano community will ask the same and they are far more rigorous and not as open to djed/shen at the moment as the Coti community..

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30.05.2022

HeptaSean

Zippy Zoro | Resolute Node
2nd part of what I wrote above as far as I can tel...

Actually, I am from the Cardano community and not invested in COTI at all. Just came here a while ago to ask some nasty questions about the exact implementation. 😁

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30.05.2022

McPrime

HeptaSean
Actually, I am from the Cardano community and not ...

I'm familiar with the risk of overcollateralized stablecoins in which Djed is part of. The only way for it to fail is if there's a sudden 75% drop in price on ADA, that simply extremely unlikely to happen. Just because it's a possibility, doesn't mean it will happen.

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30.05.2022

Zippy Zoro | Resolute Node

HeptaSean
Actually, I am from the Cardano community and not ...

Welcome to the Coti community 🤗

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30.05.2022

HeptaSean

McPrime
I'm familiar with the risk of overcollateralized s...

Almost every post in this discussion from everybody contained “very unlikely” in one formulation or another. But when implementing a stable coin with a very rigorous mathematical foundation, all possibilities considered in that foundation should be explained, even if they are unlikely. And that contains the depeg scenario.

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30.05.2022

McPrime

HeptaSean
Almost every post in this discussion from everybod...

Would you rather be lied to and have us say that its impossible to happen?

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30.05.2022

HeptaSean

McPrime
Would you rather be lied to and have us say that i...

No, of course not. That was the whole point of https://t.me/COTInetwork/737848 for example.

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30.05.2022

McPrime

HeptaSean
No, of course not. That was the whole point of htt...

That's my point, they're being honest that a depeg isn't impossible, but the question is, how likely is it for a sudden 75% dump on ADA to happen?

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30.05.2022

HeptaSean

McPrime
That's my point, they're being honest that a depeg...

As far as I have understood it, we were just chatting about how honest they are. One of the COTI staff did write “If you will read the documents carefully, you will understand how Djed won't depeg even in such scenarios”, which is not quite true. And @ZippyZoro is right that the depeg “warning” in the FAQ could be a bit clearer and more detailed (while at the same time it could also spend another few words on how unlikely that scenario is).

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30.05.2022

McPrime

HeptaSean
As far as I have understood it, we were just chatt...

That depends on the scenario, if ADA drops 75% under 1 hour, it will depeg, if it drop 75% gradually over the course of 5 days, it won't depeg.

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30.05.2022

Timothy

LUNA went down 99.999%

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30.05.2022

McPrime