Once a contract is completed and the deposits returned back to the owners, will the funds be returned as liquid?


#1

It all depends on a user’s individual liquidity at the time of contract completion.

Remember, with the Dynamic Peg, each individual user maintains their own liquidity.
It is not shared (like many other supply control systems)

If the user has a high level of total balance liquidity, then any supply deflation that occurs will effect the non-deposit balance before effecting the deposits themselves.

Generally very few users have enough total liquidity that they don’t see their deposits freezing over a couple days of deflation. So almost always when a withdrawal from escrow is made, some of the funds will turn to reserve. The reserve funds are sent back to users as a “fair escrow split”; which ensures the reserve funds are mixed fairly. The amount reserved out is usually nominal (maybe a few percent at most).

However, if the supply inflates from the time of contract ending, then the users become more liquid and don’t need to do the partial reserve exit.

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