Stability Stress Test

In our white paper we covered the basics of Terra’s stability mechanism, and briefly discussed its behavior in a simulated recession. The objective of this paper is to take this one step further. We develop a methodology for modeling and simulating the various components of Terra’s system, and introduce a formal framework to evaluate the stability of Terra’s peg under stress. We apply this framework to a broad range of simulated scenarios to obtain a complete picture of the peg’s resilience to stress.

We look forward to your thoughts!

stability-stress-test.pdf (975.8 KB)

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