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> buying up DEI coins and exchanging them for $1 worth of collateral Doesn’t seem like this would be possible? When the peg fails, wouldn’t all the people hold
by icambron 4y ago
> buying up DEI coins and exchanging them for $1 worth of collateral
Doesn’t seem like this would be possible? When the peg fails, wouldn’t all the people holding the coin flood the redemption process, immediately draining it of all USD?
Or put it this way: those traders buying the coin for 80 cents and then redeeming it for a dollar…who are they buying it from and why wouldn’t they redeem it? They just left 20 cents on the table. I feel like I’m missing something.
- vkou 4y agoI'm just guessing, here, but it's possible you're missing the exit strategy where the insiders are calmly walking towards the escape pods.