y
of collateral to get y
worth of stablecoins, and Hedging Agents back up exactly this amount y
of collateral (after bringing a margin of x
in collateral).p
and the current price is q
, now to be able to sustain the convertibility, an amount y.p/q
of collateral is needed to reimburse users.x
of collateral initially brought, the amount of collateral due to (or taken from) the HA is now y(1-p/q)
.x+y
in the Core module, what is now due to HAs and users is:x
of stablecoins and HAs already cover this amount, then new ones will not be able to enter.p_e
and commits to an amount of collateral of c
. HAs are not allowed to hedge more collateral that is in the Core module. To this extent, c
must be collateral in the Core module's reserves, brought by users minting stablecoins.p
, if we imagine that there was only c
of collateral in the module before the HA came in, then it ends up with:0.9x/(x-y)
becomes superior to 0.95
, then some HAs positions could be force-closed until the amount covered by HAs is back in the bounds again (below the target hedging ratio).6.25%
.