If you have rules like that you effectively obliterated all trust, because you've got chain halt rules so why have a chain at all?
You're going to just push people to the chains that don't limit arb and your project dies from lack of liquidity.
The algo stablecoin is a project that has failed since 2015 and will continue to fail and your half-backed solution isn't changing dick. You really think people with near bilions in funding, research and backing would think of this and think of your proposal?
This is just shitcoin apology,
Algo coins will always continue to fail until they are protected as in classic finance. Creating billions of UST without thinking that a massive sale could bring down the price is insane! Applying my proposal would be a basic level of protection to be able to say: we made a mistake in printing money, we have to solve it in 24 hours.
People's trust is not only based on the chain, but also on the monetary stability of a stablecoin
then it's no longer an algo coin which is my point entirely you cannot use blockchain assets with a reference tool, no ones ever solved the oracle problem in computing. I could go through the litany of issues behind it but I've already put them up on my blog
You are right: if the algorithm fails it is no longer algo. The problem starts with the fact that we are human and we need to destabilize a value to make a profit. Whatever the algorithm, there will always be someone ready to attack it. If there were a calculation capable of predicting the trend of a market, finance would cease to exist since it would no longer make sense to negotiate
Anyway, the error has been made by humans. As long as balancing UST was the most profitable business, people focused on that. The mistake was to sell Bitcoin instead of leaving the rebalancing to investors, making it more profitable to play short. The volatility auction would protect against human errors by giving time to understand what they are and correct them while minimizing the damage