As the risk bearing tranche of the OADA System, sOADA value fluctuates based on:
All loan interest & liquidation PnL accruing to sOADA
All losses from liquidations absorbed by sOADA
If the system has 6M ADA TVL, with 5M ADA backing sOADA then the maximum tolerable loss before the OADA peg is endangered is 5M ADA. This is a classic senior/junior capital structure.
However, the system's Maximum Market Size doesn't allow for pushing towards these limits.
