kaal:claim:3782216-033

Because the tension between efficiency and security demands a careful estimate of the hot money ratio, a sophisticated decentralized governance system is crucial for any efficient stablecoin.

Source quote, verbatim

The tension between these two values of efficiency and security motivates a careful esti- mate of the hot money ratio. This means a sophisticated decentralized governance system is crucial for any efficient stablecoin.

From

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

Cite as

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

Classification

conditionsupport: arguedtokenomicsgovernance-designdecentralizationsystemic-risk

Related claims

extends kaal:claim:3402701-024 Misestimating the hot money ratio fails in both directions: overestimation makes the currency more costly to u...

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