kaal:claim:3402701-002

Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liquid; anything less opens arbitrage attacks of the kind Soros used against the Bank of England.

Fiat currency collateralization is expensive and inefficient because all of the value that is backing the cryptocurrency needs to be liquid, otherwise arbitrage opportunities, such as the Soros attack, are possible

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 1 INTRODUCTION, p. 6
https://ssrn.com/abstract=3402701 · source PDF

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

• fiat-backed pegs claiming full collateralization

mechanismsupport: arguedfailure: soros-style-peg-arbitragefamily: valuation-and-pricing-failuredeficonsensus-and-security

• restates kaal:claim:3396522-010 Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liq...
• extends kaal:claim:3396522-009 A fiat backed stable cryptocurrency that is not fully collateralized is exposed to arbitrage trade attacks of ...

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