I think you're being unfair with your quotation there. The point they were making was that their system works over time, so whilst there can be temporary disjun

I think you're being unfair with your quotation there. The point they were making was that their system works over time, so whilst there can be temporary disjunctions on the long term the mechanism works, and therefore it's reasonable to expect parity to return which will help in the short term. If Basis were 95% of nominal value and you know that the algorithm ensures a return to 100% then actually you're incentivized to buy in, in the knowldge you can make profit lending liquidity. This may not be how it worked, but the idea that the predictable long term mechanism incentivizing short term behaviour isn't without merit.