1/ $LUNA isn't a cryptocurrency. It's just centralized banking 2.0 and @stablekwon is the bank CEO. We can and must do better as evidenced by how this ponzi scheme brought down the crypto market recently. We've had signs of this for awhile. 👇
2/ Then we have DJED, built for #Cardano. Djed will not mint, and you will not be able to burn Shen below 400% collateralisation. You will not be able to burn Djed, or mint Shen, above 800% collateralisation. If we get a de-pegging with that then there are bigger concerns.
3/ This is the difference between real thoughtfully designed decentralized and secure cryptos like #Cardano with stable coins like DJED and the Solanas and Lunas of the space which either break, fail, or are just glorified ponzi schemes. Support the real stuff, for real users. 👍
4/ More on DJED:
-Ovecollateralise with Ada
-3x as much Ada to buy back all stablecoins
-ADA price has to go down 67% before peg becomes problematic
-at that point reservecoins (shen) are issued for the equivalent amount
This is known as a "debt-for- equity swap" in Tradfi
-Ovecollateralise with Ada
-3x as much Ada to buy back all stablecoins
-ADA price has to go down 67% before peg becomes problematic
-at that point reservecoins (shen) are issued for the equivalent amount
This is known as a "debt-for- equity swap" in Tradfi
5/ Generating new Shen will dilute the value of Shen Itself however so there is a risk of things spiraling further. But it is the most robust and well thought out *algorithmic* stablecoin design we've seen this far in the space. I expect this approach to be further refined.
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