Gresham:
$O3 whales don’t deny or accept claims. I think Do imagined a game theoretic model but almost easier to think of it mechanically as a capital structure whereby the Insured Capital has a first priority claim on all the oAssets (capped at value of the Insured Capital Claim…think of claim as min(oAssets, Insured Capital)). There are more oAssets than there are First Priority claims by design because below the First Priority claims are claims by insurers and token holders. So there is no control over the payout to the insured participant, it is automatic given their priority in the cap structure.
Yes i think this makes sense, $O3 whales will only come in when a “Challenge coverage” is triggered. Otherwise, oAssets are meant to guarantee that the insured capital is paid out accordingly.
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