IST and Designing Stablecoins in Cosmos
Zero Knowledge
00:00
Is There a Debt Limit in a Token?
Do you have protection within the design itself for if a toxic asset were to be used as collateral? Yes, in a system like that. So key thing, i mean, one of the biggest protections is a debt limits for any particular asset type. And so it's got to have a debt limit. One of the jobs of the economic committee is, if things start to turn south, you know, bring that debt limit to zero. No new vaults can be created, or no new i s t be minted against a collateral that looks like it's a risk y.
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