How to choose in the face of a run agency?

Since LUNA collapsed and returned to zero in May, although many institutions tried their best to hide it and did not want to let the past of investing in LUNA surface on the surface, the market still ruthlessly liquidated cryptocurrency depositors with poor health through the decline. A risky operation that does not see problems in a bull market, but ruthlessly exposes its problems in a bear market. Even if some institutions are not involved in the huge LUNA whirlpool, it is difficult to guarantee that their counterparties in the same boat are not involved in LUNA. At this time, everyone found that the lending relationship between institutions is intricate, and most of them even have no collateral. Therefore, a huge credit leveraged Lego has also been formed. In this huge and painful deleveraging bear market tide, a huge and unignorable sword of Dakmoris hangs on the heads of many cryptocurrency depositors, regardless of whether Whether the institution is financially sound, when the blade reaches its neck, it still cannot escape the fate of collapse, that is, a run.

LUNA and TITAN were crushed by the trampled people in a similar way, and the once brilliant ATH price and TVL no longer exist. However, the people's psychology and behavior patterns are elusive. Today, perhaps a KOL can FUD on the community platform. Cause a chain reaction and then collapse the machine purchase, or KOL may become the laughing stock of everyone and ignore it. The reason why Titan and LUNA may collapse is also related to their transparent on-chain data. Transparent on-chain data means that once the situation deteriorates, everyone can know that panic spreads and spreads under the sniping of some interested people, just like SASHA uses When the deposit cycle of depositors blows bubbles, once they are discovered, they will also face runs and shorts. However, if the data is not transparent enough like CELSIUS, maybe when the event is known to the public, it is equivalent to the collapse of the mountain. Maybe some institutions There are still potential thunderstorms, but if they can continue to make profits until they cover losses, they can be dealt with by institutions. Perhaps at this time, a group of crypto or currency depositors envied the traditional banks they criticized. Even though there have been many cases of public stock bank fraud in Taiwan, politicians have generously used the money of the vast number of depositors for their relationship. Borrowing flowers to offer Buddha, the internal control audit has been under pressure all the way. Obviously, public-stock banks are used as small personal treasuries, but as long as the depositors do not run, these small bad debts can be covered by the bank's profits sooner or later.

There are roughly two solutions to a run. 1. Just like the centralized banking institutions in various countries, mutual insurance for deposit insurance will reduce profitability to a certain extent. After the establishment, the frequency and probability of being run will be greatly reduced. There are already several native on-chain insurance institutions in cryptocurrencies, such as insurance coincover . However, in the face of shocks, the current buffering effect of these encrypted insurances is not enough. Not high, because first of all, the insurance of these cryptocurrencies is not compulsory. Without compulsory insurance, many people do not know that they can hedge their investments, and investors in cryptocurrencies are profiting. Risk-loving decentralists at times, another face when losing money, people slam the cost of insurance for the heavy impact on profits in a bull market, and in a limited number of insureds, insurance premiums The rate remains high and even adverse selection occurs, and it may be difficult for most operators and users to reach a consensus on this plan in the short term. 2. It is the setting of the lock-up period. In fact, many cryptocurrency depositors have set up fully-locked products for their wealth management products. Before the lock-up period expires, there is no way to get back the user's assets in advance. However, for many users Under different considerations, the method of current deposit will still be selected. However, it may be possible to design semi-closed commodities, just like bank fixed deposits or insurance company savings insurance, even if users need money temporarily, they can be retrieved in the form of different proportions of injury principal or injury interest. In this way, designing commodities increases the cost of temporary withdrawal by users, and can also avoid the occurrence of runs to a certain extent.

Otherwise, many crypto or currency depositors today have a hard time deciding whether to run to death in order to preserve the freedom of users and the reputation of the platform, or shamelessly but effectively lock customers in for an unknown amount of time. In the toilet, why is the vires lending platform on the waves chain still surviving, returning user funds in a slow way, instead of collapsing in a short period of time like Luna? This may be the shameful but effective face of closing the toilet. way of crisis

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