…atility-coin holders. The volatility-coin can also serve as the collateral backing the stablecoins. Given the potential volatility of the collateral-base, stablecoins are issued on an overcollateralized basis. The volatility-coin represents a percentage of future transaction fees and its value can be modeled…
Now is this overcollateralized relative to expected future transactions or overcollateralized relative to being a full reserve asset?
A pool of insurance policies can be overcollateralized relative expected future claims but undercollateralized relative the total value of potential claims underwritten by all policies issued by the insurance issuer.