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RE: Terra-Luna would have been saved if it had implemented the volatility auction

in Olio di Balena3 years ago (edited)

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