If I get you right, you propose the developers should have halted "the functionality of the redemption window" to try and avoid panic and somehow control the run. The point is, in my view, how does it match with the principles of (i) code is law and (ii) decentralization vs commercial bank practises...
The pausing function is written into the code (smart contract), so it would be part of the existing "law" of the code. The ability to pause is not the best decentralized feature, but one thing to realize is that the far majority of defi projects are hardly decentralized. Governance contracts play a big role in decentralizing the big decisions, but a governance contract can't respond in an instance and pause attacks. The ability to pause is supposed to be a failsafe that allows a developer or other admin the chance to save user funds from leaking out of the contract. The unfortunate problem is that the admin team would need to have some competency for it to prevent anything.
A great example of pausing would be Beefy's admins using it to turn off deposits into their IRON-USDC vault after the meltdown happened.
You make a good point, and I have got to say that I do not disagree with you.
The pause functionality could have been easily achieved when they minted 1 billion TITAN, which was supposed to be the max cap. Then no more IRON would have been redeemed and perhaps new arbitrage opportunities would have offered to mint IRON with cheaper TITAN leading to TITAN being burnt and reducing the total supply of TITAN again. Now TITAN is a meme coin. So join us on TITAN is our DOGE community, where the community will make TITAN great again: https://t.me/titanisourdoge
Presstab, can you contact me please, i have more information on moneyflows, i have been doing research trying to expose these guys i would like your opionion. Discord Iggy#5983
If I get you right, you propose the developers should have halted "the functionality of the redemption window" to try and avoid panic and somehow control the run. The point is, in my view, how does it match with the principles of (i) code is law and (ii) decentralization vs commercial bank practises...
The pausing function is written into the code (smart contract), so it would be part of the existing "law" of the code. The ability to pause is not the best decentralized feature, but one thing to realize is that the far majority of defi projects are hardly decentralized. Governance contracts play a big role in decentralizing the big decisions, but a governance contract can't respond in an instance and pause attacks. The ability to pause is supposed to be a failsafe that allows a developer or other admin the chance to save user funds from leaking out of the contract. The unfortunate problem is that the admin team would need to have some competency for it to prevent anything.
A great example of pausing would be Beefy's admins using it to turn off deposits into their IRON-USDC vault after the meltdown happened.
You make a good point, and I have got to say that I do not disagree with you.
Thanks for your answer. Strange things happen, even more in growing environments...
The pause functionality could have been easily achieved when they minted 1 billion TITAN, which was supposed to be the max cap. Then no more IRON would have been redeemed and perhaps new arbitrage opportunities would have offered to mint IRON with cheaper TITAN leading to TITAN being burnt and reducing the total supply of TITAN again. Now TITAN is a meme coin. So join us on TITAN is our DOGE community, where the community will make TITAN great again: https://t.me/titanisourdoge
Presstab, can you contact me please, i have more information on moneyflows, i have been doing research trying to expose these guys i would like your opionion. Discord Iggy#5983
To what degree can you see an event like this occurring in the Terra ecosystem?