Check theorem 1&2. As we have at least 400% reserve how realistic would be to have ADA dropped for example from 1$ to 0.25 in a couple of hours (market response)?

The risk goes to the reserve coin and not to ADA, these theorems work all together (with incentives) and not individually.

I agree that the risk is *much* lower than the one for the Terra construction (for the price of locking ridiculous amounts of ADA). But I asked about the “always pegged to 0.99–1.01 USD”. That claim is nowhere in the paper!

However, it does not have to drop to 25% in a couple of hours to depeg. If nobody wants to buy new Shen, it could also depeg, when it falls to 25% in days or weeks.

About tree fiddy

Haha somewhen what a word!!!!!

2025