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I don't know enough about crypto to understand what it means that the team is working to restore the peg. Unless something is literally 100% collateralized by t

by qgin 4y ago

I don't know enough about crypto to understand what it means that the team is working to restore the peg. Unless something is literally 100% collateralized by the thing it is pegged to, what code changes are there in the world that can legitimately maintain that peg under all conditions?

NovemberWhiskey 4y ago
When I read "working to restore the peg" I read either "frantically looking for a bailout" or "frantically looking for a way to turn this into a rug pull".
joosters 4y ago
> what code changes are there in the world that can legitimately maintain that peg None. But I guess it sounds good to pretend to be doing something useful!
jacobsenscott 4y ago
There is exactly one way to peg a currency to the USD. It is to simply declare it is pegged, and have a super power sized military to force people to act like it is. Even then you are constrained by the geography your military controls.
- qgin 4y ago
  Sounds like the dev team has a lot of work to do then
LegitShady 4y ago
The only way to peg it is to always be willing to give someone a $1 for one, which will drive the price towards a $1 assuming you can convince people to buy them. The problem is that this coin won't give you $1 - assuming they're allowing redemption at all, it will give you .80c worth of coinbase's USDC and .20c worth of DEUS tokens. If you believe DEUS is going to crash, that means the value of DEI is 80c maximum through USDC. Coinbase is of course is dire straits as its stock has plummeted from ~$360 (it's all time high) in early november to $130 in early may and is currently sitting at around $70, so while it isn't a coin, the future of USDC is tied to coinbase and the future of USDC is unknown especially if its parent company is floundering and stock is down to ~20% of its high in november and down ~73% YTD. I would describe their situation as "volatile". DEUS had already lost more than 50% of its value between the beginning of April ($1100) and the beginning of May ($420 ha!), and its continuing on its way down ($200 currently). So not sure how they can maintain a peg when 20% of that peg is in 'currency' that is in free fall, and the other 80% is tied to coinbase whose stock is in freefall this year. They never had any currency backing it at all - it was always coinbase's USDC and DEUS which is the 'luna' of DEI's 'terra'.

by qgin 4y ago

NovemberWhiskey 4y ago

When I read "working to restore the peg" I read either "frantically looking for a bailout" or "frantically looking for a way to turn this into a rug pull".

joosters 4y ago

> what code changes are there in the world that can legitimately maintain that peg None. But I guess it sounds good to pretend to be doing something useful!

jacobsenscott 4y ago

There is exactly one way to peg a currency to the USD. It is to simply declare it is pegged, and have a super power sized military to force people to act like it is. Even then you are constrained by the geography your military controls.

qgin 4y ago
Sounds like the dev team has a lot of work to do then

LegitShady 4y ago

The only way to peg it is to always be willing to give someone a $1 for one, which will drive the price towards a $1 assuming you can convince people to buy them. The problem is that this coin won't give you $1 - assuming they're allowing redemption at all, it will give you .80c worth of coinbase's USDC and .20c worth of DEUS tokens. If you believe DEUS is going to crash, that means the value of DEI is 80c maximum through USDC. Coinbase is of course is dire straits as its stock has plummeted from ~$360 (it's all time high) in early november to $130 in early may and is currently sitting at around $70, so while it isn't a coin, the future of USDC is tied to coinbase and the future of USDC is unknown especially if its parent company is floundering and stock is down to ~20% of its high in november and down ~73% YTD. I would describe their situation as "volatile". DEUS had already lost more than 50% of its value between the beginning of April ($1100) and the beginning of May ($420 ha!), and its continuing on its way down ($200 currently). So not sure how they can maintain a peg when 20% of that peg is in 'currency' that is in free fall, and the other 80% is tied to coinbase whose stock is in freefall this year. They never had any currency backing it at all - it was always coinbase's USDC and DEUS which is the 'luna' of DEI's 'terra'.