The cap uses `abs(diff)`, so it also caps losses. A real 15% drop with a 2% cap takes eight attestations to land, and redemptions pay the inflated price the whole way. Cap the upside only.

[hpmaxi]

The cap uses abs(diff), so it also caps losses. A real 15% drop with a 2% cap takes eight attestations to land, and redemptions pay the inflated price the whole way. Cap the upside only.

Originally posted by @luchobonatti in #69 (comment)

[pragalli]

Suggested title: Cap the NAV deviation on the upside only

[pragalli]

I'm not sure what exactly needs to be done here. Could you explain the main goal of this issue?

Also, isn't this a business decision rather than a code fix? Removing the downside cap makes losses show the real price, but it removes the protection against a bad attester crashing the NAV in one step.

[luchobonatti]

I'm not sure what exactly needs to be done here. Could you explain the main goal of this issue?

Also, isn't this a business decision rather than a code fix? Removing the downside cap makes losses show the real price, but it removes the protection against a bad attester crashing the NAV in one step.

It is a code fix, but you are right that it is a business decision. Maybe we can handle this inside the vault config in the admin panel.