SIP: Zero Equity

[glasgowm148]

At 100% Rsv is worthless. I dont think this is a problem (need to re-read djed paper if there was some rsv mint problem here). Rsv holders are supposed to carry the risk. No need to protect their equity.

[glasgowm148]

https://t.me/SigmaUSD/20505

<b.wp> If this is the case, then, if the reserve ratio ever reaches 100% (equity = 0), people would be able to mint an infinite amount of SigRSV for a price of 0 ERG.

<b.wp> Ah, I see this now:

val rcNominalPrice = if (equityIn == 0) ${rcDefaultPrice}L else equityRate
Only if they redeem. But people could also wait until RR>100% and then the person who minted reservecoins for free would basically own the complete excess reserve without contributing a single Erg.

<b.wp> On SigmaUSD, something should eventually be done about this hacky approach, which causes a price discontinuity and does not fully solve the "zero equity, zero price" problem:

val rcNominalPrice = if (equityIn == 0) ${rcDefaultPrice}L else equityRate