If this is an attack like Soros vs the Bank of England, how is the profit exfiltrated if both currencies are worthless when the music stops? Is there a put option somewhere else?
I sell the LNA for 11BTC worth of dollars. A meteor comes and destroys the price of LNA, sending it to a penny. When my loan is due, I buy 120LNA for a buck twenty and pay it back. I keep all of the 11BTC worth of dollars, having essentially bought them for a dollar.
Something like that? Seems like it fucks lenders more than holders, but I'm guessing that a lot of holders use some trickery to act as lenders as well. Neat scam.
They sold for real USD. Or sold for another stablecoin (and then into real USD).