You are viewing a single comment's thread from:

RE: Hive Engine - Audit Synthetic Tokens

in LeoFinance3 years ago (edited)

I have checked hive power but that it is not liquid Hive if we have a bankrun to withdraw all the swap.hive there is not enough hive to pay everyone because the power down takes 13 weeks to be completed (more a less 3 months).

Why the users funds are staked instead to be liquid and available to ensure the peg exists without wait for power down?

Sort:  

But with some powered up maybe the yields can make the collateral eventually greater than the printed assets

I really don't think like that.

If the assets are the ones that give the PEG, they always need to be liquid and available to the withdrawal. Otherwise, if a bank run occurs, there will not exist enough assets for everyone.

Users/Peg assets shall never be used to yield.