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Patrick · 115w
What happens when USD value of BTC doubles, and beyond, to the point that collateralization of BTC to USD isn't even at 100%? Seems like wrappers will be able to just walk away with free Bitcoin.
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Sir Brian of London @Brian of London
Wrapping and unwrapping will be an organic process. So in effect this will inject a form of dollar cost averaging into the amount held as collateral.

But highly trustworthy wrappers will also develop to the point where the absolute value of the collateral is less important.
Patrick · 115w
I don't follow what you mean about the DCA side. Does the wrapper need to keep 2x HBD at all times or just at time of wrap? Falling back to just trusting means that a lot of people are going to get rekted by the untrustworthy lot. With enough time, and valued stored, even the trustworthy might faul...