OADA Peg Stability

If too much OADA is borrowed and dumped on the open market:

• The system may temporarily lose the ability to buy back OADA at 1:1

• To restore solvency, the system stops providing refinancing liquidity, forcing loans to close

• Since all loans have bounded max duration (1 month), the system can always force contraction of liabilities

This is a major improvement over systems with perpetual loans (such as Liquity, AAVE, etc), where positions can remain open forever. The protocol explicitly notes that markets may see temporary OADA discounting during contraction phases. Borrowers are incentivized to repay during these stress events as OADA becomes cheaper, which organically helps restore system equilibrium back to parity.