kaal:claim:3396522-012

Cryptocurrency backed tokens are more expensive than fiat backed tokens because stability is sourced from far more volatile assets, so such tokens must be backed by substantially more than 100 percent of the collateral's current value to survive a drop in the collateral basket.

Any cryptocurrency-backed token must be backed with much more than 100% of the current value of the cryptocurrency in case the basket of other crypto currencies' value drops.

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019), IV. Stable Cryptocurrencies, p. 25
https://ssrn.com/abstract=3396522 · source PDF

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

• holds while the backing cryptocurrencies remain more volatile than fiat

mechanismsupport: arguedfailure: collateral-value-collapsefamily: valuation-and-pricing-failuretokenomics

• restated_by kaal:claim:3402701-004 Cryptocurrency-backed tokens must be overcollateralized well beyond 100 percent of current value because the b...
• restated_by kaal:claim:3782216-030 Cryptocurrency backed stablecoins are even more expensive than fiat backed ones, because stability is being so...

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