Improvements based on extended-Djed When stablecoin is close to losing peg, e.g. 150%, then ERG is moved from liabilities (stablecoin holders) to equity (reservecoin holders). Effectively losing the peg starts at 150% in this case. This solves the zero equity problem. When stablecoin starts to lose its peg, then the stablecoin holders are compensated by printing them reservecoin (debt for equity swap). This solves the stablecoin loss of peg at <100% problem.

oh that's cool, what about the window of opportunity on redeeming rsv assuming the peg recover after people mass mint to maintain the peg? would it be a shitshow with people left holding the bag, if so how bad could it get? i understand how rsv works as a call option on the reserve if it becomes over collateralized but that seems to me like 1 person could hug every bit of unlocks to himselves.

sry if thats anwsered in the math formulas, im to much of a smooth brain for that, i understand game theory tho 😅

Not sure what you mean, why would people mass mint to maintain the peg? what window of opportunity?

yeah like if price of erg drops to a level that makes it unsustainable for the protocol to maintain the peg, and people just start throwing their ergo to mint rsv to try and keep the peg, i might be missing somethin?

the window of opportunity would be the moment the protocol goes from not allowing you to redeem rsv for erg to when it does. like not everyone can redeem at once if its barely above collateral threshold right?

May get a bit of that I guess, but people don't like loosing money - it'd be more people taking a gamble on it going up than trying to 'save' anything.

Yeah you can only redeem above 400%, but if it had managed to pump back up to 400%, many wouldnt want to withdraw.

why not? isnt the point of taking the option to redeem it when the stash is fat?

yep it's the best time to redeem, but people are greedy and would wait for 600%, 800%, etc. Some just leave it in forever. If it'd went way down to 100% and managed to get back upto 400% any panic that would've caused such stringent withdrawals would've dissipated likely. If it hadn't then people would redeem and it'd go down to 399%, then they'd need to wait for it go back to 401% - then a few more could jump out, etc.

i mean that's the exact scenario that i would expect would leave a lot of people unable to redeem after a whale redeems all the available ''excess'' collateral.

i guess it would depend on the amount of rsv tokens minted per collateral to the rate of redemption per collateral and wheter or not the supply of rsv inflates without people being able to exit due to the limited amount of available excess collateral.

Yep they could be locked out this way, but can still exit on secondary markets like spectrum. The whale has no benefit to doing this other than getting out first though right?

yea, im just trying to look at worst case scenario cause well, it's crypto lol. like rn it's pretty under collateralized, let say ergo goes down an other 50% and some whale mints a massive amount of rsv tokens at the low, i could see how when the time comes that the threshold to redeem is reached, he could hug it for a long ass time, which would essentially remove the value proposition of the remaining coins on secondary markets.

basically rsv on secondary markets would depeg from rsv on protocol because only that one whale whould be hugging all of the available redemptions.

sure, could happen; also a big risk for the whale though as they'd need to trap millions and risk it going to 0. And when we're 400%+ we're usually pumping and in that time people mint RSV not redeem ^^

cant we only mint rsv bellow 400%? or am i misremembering the graphic

Below 800%

oh ok my bad

i'll have to look more into it more i think. in my mind there's never going to be enough collateral for rsv holder to redeem and that's eventually going to cause problem but more than likely im missing something with the way the tokenomics of rsv work with minting and redeeming.

well we've had a whale trying everything for the past 2yrs and he's not tried that. Maybe in the bull it's more probable

thanks for taking the time to anwser my noob questions. imma hit the bunk. have a great day / night!

haha, we'll find out eventually xD

What are the differences between zk-snarks in the context of eth & sigma protocols in the context of ergo?

Overview here, https://crypto.stackexchange.com/questions/78316/zk-snark-against-sigma-protocols-and-for-secure-function-evaluation The proof of sigma-statementes are made non-interactive thanks to the Fiat-Shamir transformation.

Very cool, researching right now. BIU has great video for explanation encase anyone else is interested

are exclamation points required in all tweets? i don't tweet much but seems like they all have at least one, no matter who it is from

Yes, 5000 DOGE fine otherwise

This is true