TerraUSD isn’t centralized, and the metrics are open on the public blockchain.
How else would you like to move the goalposts?
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Provide data/links Erik.
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1/2 Quick read: like most algo-stablecoins, the system depends on an oracle. This oracle here are the base-layer PoS validators ("miners") who enter the exchange rate into a block. Their stakes can be slashed by a vote by hodlers.
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You get slashed if you vote outside some band from the median price
No “hodlers” vote required
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Literally every oracle works the same way, not sure where you extrapolated the holder’s vote from the WP
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Ok, in this case it's a bit strangely formulated. But it's still just miners voting and their only stake is their stake which doesn't get slashed if they coordinate and can be shorted against.
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No all the delegations get slashed as well. There are also circuit breakers that caps price reports per vote period, so in order to be successful vals would need to coordinate maliciously over multiple vote periods to profit - by which point delegations will churn
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Ok, that's not in the whitepaper but I believe you. Doesn't help though. What if the price does crash but the miners vote that it did not? No circuit breaker can detect it. And how does anyone get slashed if they all vote the same?
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1. If validators are lying delegations would still churn
2. If terra price crashed and CB turns on it would still be attractive to buy it up and change it with Luna at $1 - protocol always guarantees terra exchange rate
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1. Changing out the bad guys after they did the attack doesn't undo the attack
2. You mean once the oracle has changed back the exchange rate again? No matter who you vote on it doesn't change the mechanism back to a safe one, the new guys can redo the same attack as the first
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1. The attack wouldnt have occurred - manipulating the oracle is only profitable if you can exit luna —> terra at scale. Terra <> luna swaps have quadratically increasing spreads, so would need to sustain attack over weeks to profit
Why not exit Luna -> USD? Whitepaper says Luna would crash if the oracles lie, so just short Luna/USD and crash it. Luna <> Terra swaps are not the only exits for a popular coin, there would be tons of exchanges you can make a profit on by destabilizing the system.
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Luna would crash if oracles SUCCESSFULLY lie, i.e. attackers are able to profit handsomely at the expense of holders
Otherwise it would be cheaper to start some FUD on reddit to accomplish the same effect ^^;
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