Thought I would bump this discussion up as it is germane to the current situation. In a separate thread regarding emergency use of the community pool, I argued that the reserve wallet should have 365 days of reserves assuming the collateral is worth 50% of market value. Bear markets may last longer than a year, but I think you capture this dynamic by solving for 365 days with the collateral at a fraction of the current price. Plus, 365 days gives the community time to adapt and react to unforeseen developments.
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