Advantages of This Model

  1. Oracle Independence:

  • The system doesn't rely on external price feeds

  • Resistant to oracle manipulations and flash crashes

  1. Market Efficiency:

  • Arbitrage opportunities ensure prices remain close to market rates

  • Supply and demand forces naturally balance the ecosystem

  1. Volatility Resistance:

  • The system can adapt to market changes without external intervention

  • Stable USD-denominated repayments protect against token price volatility

  1. Aligned Incentives:

  • Each participant's actions benefit the others, creating a symbiotic relationship

  • This alignment encourages long-term participation and system growth

  1. Enhanced Security:

  • The 3-day streaming mechanism protects against flash loan attacks and other rapid exploitation attempts

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