Can you clarify how the value of the SerumUSD basket of stablecoins would not drop if one of the collateral coins goes to 0? I'd expect a bank run on the smart contract, leaving the final holders with 100% loss since the worthless coin is the only collateral left.
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Note that there's no smart contract holding some of each -- instead it's a physically delivered market. So the 'value' is the requirement for the short to pay one of the 7 stablecoins--and you get to veto 3. So as long as at least 4 are worth $1 you can force them to deliver $1