| 18 Nov 2023 |
 🍠 kbrav | It's going to 0 | 06:44:27 |
| 🍠 kbrav | https://www.youtube.com/watch?v=4htF9ix9Jpw | 06:45:25 |
| 19 Nov 2023 |
|  Red changed their display name from Self Mastery to Red. | 12:00:28 |
| 20 Nov 2023 |
|  stablegaralo joined the room. | 15:23:11 |
| stablegaralo | hello | 15:23:16 |
| stablegaralo | Got referred here had some questions. Could someone explan reflex bonds to me | 15:25:41 |
| stablegaralo | * Got referred here had some questions. Could someone explain reflex bonds to me | 15:25:47 |
| 🍠 kbrav | It’s just a name really | 15:27:46 |
| 🍠 kbrav | What are you curious about specifically | 15:28:34 |
| stablegaralo | I want to develop a 100% algorithmic stablecoin. However, I have been unable to come up with a solution that sustains a long-term peg to 1 without the risk of a collapse. | 15:31:41 |
| 🍠 kbrav | Fishy might have some thoughts there but I think that’s not very feasible if you’re going for 100% | 15:35:09 |
| stablegaralo | I know, it really sucks. | 15:36:18 |
| stablegaralo | I am thinking I might have to go with the DAI/MakerDAO approach | 15:36:37 |
| 🍠 kbrav | Idk one thing maybe worth thinking about is like, Rai has the price rate to provide negative interest rates. But maybe there’s another way | 15:43:45 |
| 🍠 kbrav | Like as long as you can sustainably provide both positive and negative interest rates without voting then you’re maybe on the right track | 15:44:54 |
| stablegaralo | What do you mean without voting? | 15:45:11 |
| 🍠 kbrav | Well you said you wanted 100% algorithmic | 15:45:29 |
| stablegaralo | Is it possible to have it be algo and also provide loans? has to be no? | 15:47:12 |
| 🍠 kbrav | Do you mean like terra luna? I’m talking about a stablecoin that doesn’t use governance | 15:49:29 |
| stablegaralo | In reply to @kbrav:matrix.org
Do you mean like terra luna? I’m talking about a stablecoin that doesn’t use governance Possibliy but not "algo" the same way UST was | 15:51:16 |
| 🍠 kbrav | I think it’s possible to provide loans and be algo | 15:52:57 |
| 🍠 kbrav | minus whatever roots are involved with the reference asset ofc, like if you're pegging to USDC then yeah USDC has its own root | 16:54:25 |
 Fishy | In reply to @stablegaralo:matrix.org
I want to develop a 100% algorithmic stablecoin. However, I have been unable to come up with a solution that sustains a long-term peg to 1 without the risk of a collapse. Tbh I don't believe that it's possible to do this, at least functionally
Like maybe you can have something that has a peg of $1 forever but has some funding rate | 19:27:11 |
| Fishy | In reply to @stablegaralo:matrix.org
Is it possible to have it be algo and also provide loans? has to be no? By algorithmic do you still mean overcollateralized? | 19:27:48 |
| Fishy | In reply to @fishfish:matrix.org
Tbh I don't believe that it's possible to do this, at least functionally
Like maybe you can have something that has a peg of $1 forever but has some funding rate Fundamentally two different forms of money could likely never have the exact same price, as there will always be some demand imbalance | 20:01:07 |
 🥝_🥝aaron | Problem is running into limits. Can't have negative rates without the protocol going bankrupt unless you introduce a price rate mechanism and give up fixed peg. Same with protocols using collateral ratio as the manipulated variable, can't decrease market price anymore once it approaches undercollateralized. | 21:02:31 |
| 🥝_🥝aaron | In reply to @stablegaralo:matrix.org
I want to develop a 100% algorithmic stablecoin. However, I have been unable to come up with a solution that sustains a long-term peg to 1 without the risk of a collapse. https://x.com/delete_shitcoin/status/1525083286246137856?s=20 | 21:42:00 |
| 🥝_🥝aaron | crossed section has never worked, and now under MiCA regulations in EU undercollateralized stables are effectively illegal, especially one pegged to a fiat currency | 21:42:49 |
| 🍠 kbrav | In reply to @stobiewan:matrix.org
Problem is running into limits. Can't have negative rates without the protocol going bankrupt unless you introduce a price rate mechanism and give up fixed peg. Same with protocols using collateral ratio as the manipulated variable, can't decrease market price anymore once it approaches undercollateralized. yeah i guess at a more fundamental level the issue is limits to what you can pay out. it's more practical to give 10x returns to borrowers by devaluing the short than by paying it out from some current or expected surplus | 21:53:16 |
| 🍠 kbrav | hehe | 21:56:11 |
