kaal:claim:3782216-029

Maintaining a full reserve is too expensive to be efficient, because every unit of reserve value backing the currency must be held liquid or arbitrage attacks become possible, and liquidity forgoes investment returns.

The maintenance of a c::% reserve is too expensive to be efficient, and signals the need for more sophisticated mechanisms. All of the value in the reserve which backs the cryptocurrency needs to be liquid, otherwise arbitrage opportunities, such as the Soros attack, are possible

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021), Basic Design
https://ssrn.com/abstract=3782216 · source PDF

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

• fiat collateralized and algorithmic stablecoins

failuresupport: arguedfailure: full reserve costfamily: liquidity-and-market-structure-failuretokenomics

• restates kaal:claim:3396522-010 Fiat currency collateralization is expensive and inefficient because the entire backing value must be held liq...

The quote above is an exact substring of the source PDF, whose sha256 is f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/09a8d5e05cb62130...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3782216-029.md | sha256sum