zlacker

This all could have been prevented with a limit order sell at 0.99 UST per USD.

>>ipnon+(OP)
There is always some fluctuation in the market, and it is impossible to tell if after hitting .99 it will go back to 1.0 or drop to 0. Sure, you mitigate risk of the asset going to 0 with this strategy, but at the same time you bleed 1% of your investment every time the market has a small shock that brings it below 0.99

So what about 0.98 then, or any arbitrary value between 1 and 0? The lower you go, the lower the chance it will bounce back to 1, but the higher your loss if it does. Ultimately it all balances out and each of these bets is just another gamble with no outsized return.

>>ipnon+(OP)
Oh your right, they almost invented perpetual motion, but forgot to add this one doodad. If they add they doodad they will have succeeded in inventing it and surely we'll all get great gains. /s

The entire process is fundamentally flawed. No adjustment will fix a faulty premise. Please stop pushing faulty thinking like this.

>>Boiled+I3
I suppose you could argue Terra has some flaw that can't be mitigated, but surely someone merely holding Terra could close their position at anytime. What is the fault in this line of reasoning?