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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


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26291673 No.26291673 [Reply] [Original]

1. Mainnet hits
2. All the app users want to get actual usd and sell, RSV goes down
3. Protocol sells the backing currencies to buy RSV
4. Backing currencies go down
5. Vault ratio is now bad since the backing currencies have depreciated
6. The protocol mints and sells rsr to buy more backing currency
7. If the backing currency starts to recover, the protocol sells RSV for rsr to arbers
8. Arbers have some shit running to immediately sell, pushing RSV down again
9. Return to 3 and cycle until everything is fucked and the tower of tether collapses

>> No.26292017

>>26291673
>Vault ratio is now bad since the backing currencies have depreciated
I don't think you understand what this part means