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Question

COTI - Currency of the Internet

Lobaugan

Https://Twitter.Com/Matthewplomin/Status/1531408667840593920?S=21&T=GzC_EKx1qQZAi5hyH28xHw

#coti #cryptocurrency #english

0

30.05.2022

9 ответов

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HeptaSean

He is right that the numbers come a little bit out of nowhere, but wrong with the 300% vs. 400%. A 400% ratio *is* a 300% buffer and, therefore, exactly the value needed to protect against a 75% drop.

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30.05.2022

McPrime

Paul The Oracle
That will end this nonsense

Those guys don't understand that a sudden 75% drop on Cardano can't happen suddenly unless we're in a great depression or an apocalyptic event. But they still want to argue that nonsense. They might as well argue, that Djed doesn't matter cause we'll get hit by a meteor in the future.

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31.05.2022

Zippy Zoro | Resolute Node

Paul The Oracle
That will end this nonsense

I wouldn't call it nonsense, The chance of it happening is just very very unlikely. What we need I think is some kind of clarification on what "sudden" means when we talk about Djed being able to survive sudden crash. Is Sudden/Instantaneous crash a fall of >75% within a day/week; a month or a quarter. From looking at ADA's history the quickest ADA has fallen 75% is 28Days 13Feb-3Mar2020 , with the biggest "sudden short term" drop being 58% in 3 days (May 2021 - Wick to wick) The biggest single day fall I found was 45% on 10Mar2020 For example ADA has already fallen more than 75% since all time highs but that took 175 days. Djed would have been fine in this case as i'm sure all would deem 175 Days not sudden. As far as I can tell sudden would be deemed to be a fall for ADA that was so fast that there was not enough time to mint new Shen to increase the reserve (less than 2-3 days?) Also not forgetting that as if users ever got spooked and began to withdraw Djed from the reserve the ratio would increase in Reserve/Shens favour (Math for this below) Treasury Ratio = 150% 600,000 ADA in treasury Ratio - 400% Djed = 150K equivalent liabilities in ADA Shen = 450K equivalent over collateralization If Djed user wanted to remove/Burn 75K Djed leaving 75K Djed, the reserve ratio now increases to 600% I think the reserve and Djed/Shen will be fine especially as I imagine that the ratio will sit closer to 800% meaning that Djed/Shen could cope with an ADA "sudden" drop of 87.5%

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31.05.2022

Zippy Zoro | Resolute Node

HeptaSean
He is right that the numbers come a little bit out...

Nope he's right about the 300 vs 400. I think he's trying to say why was 75% chosen as the minimum about and not 500% and then have 900% as the top cap. It would have been good to see analysis like I did above on historic ADA dips and why 75% is enough. Especially as ADA didn't have any "sudden" 75% dips even when it wasn't a top 25 marketcap coin. The fact that it's bigger now and will only grow then the "sudden" dips will be even more rare.

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31.05.2022

Sergey Kalinin

McPrime
Those guys don't understand that a sudden 75% drop...

75% drop happens in crypto unfortunately and, it is a cyclic phenomenon

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31.05.2022

Zippy Zoro | Resolute Node

Sergey Kalinin
75% drop happens in crypto unfortunately and, it i...

It goes back to my post above by what do we consider a "sudden or instantaneous" in terms of timing.

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31.05.2022

HeptaSean

Zippy Zoro | Resolute Node
I wouldn't call it nonsense, The chance of it ha...

Agree! But: “As far as I can tell sudden would be deemed to be a fall for ADA that was so fast that there was not enough time to mint new Shen to increase the reserve (less than 2-3 days?)” You not only need time to mint them. You need to find people to buy them.

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31.05.2022

Zippy Zoro | Resolute Node

HeptaSean
Agree! But: “As far as I can tell sudden would be ...

Yep that's actually what I meant Just my bad turn of phrase. Minting would be almost instantaneous but who knows if there would be the needed people to buy the Shen. Again my guess and it's a total guess but I think the reserve will sit at about 800% or close to it 90% of the time and there will be a nice long line waiting to buy Shen

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31.05.2022

Paul The Oracle · Accepted Answer

Paul The Oracle

That will end this nonsense

0

30.05.2022

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