Any system has potential security risks, and it is essential and critical for the original designers, developers, and even community managers to understand the system risks and set some rules to minimize the possibility of risk or the degree of harm caused by risk. The potential risks and countermeasures to WaykiChain stablecoin system are detailed here.
When WUSD’s pledged assets greatly fluctuate downward, even Black Swan incident happens, The stablecoin system may be at risk of a full suspension, which will further jeopardize the pledged assets.
The system will set “debt ceiling” to allow only a portion of the total amount of pledged assets to enter the stablecoin system, thus preventing a large amount of liquidation to cause further sharp declines in pledged assets. Community governance needs to be adjusted to the appropriate “debt ceiling” based on actual operational conditions.
The governance of the stablecoin system will be handed over to the community and the governance coin holders will jointly make decisions. According to the voting governance rules, the more possession of governance coin, the greater the voice heard.
In addition, super nodes may not be experts in related fields, and most holders may not have the economic background or technical background needed to support objective voting decision, so there may be judgment errors.
The mechanism design of the whole system makes the relationship between the super node and WGRT very strong, so super node is theoretically one of the subjects with a large share of WGRT, and node has the great right to speak and decision making.
But the nodes will also be the most relevant party of the interests of WICC. In theory, the nodes will not have the motive to damage the system, because it will also damage its own interests. Therefore, rules set will make the rights and obligations of each role in the system equal, and restrict the damage from the community.
WaykiChain team will provide complete details and information about the stablecoin system and work with the community to spread the relevant knowledge.