Only for as many UltraCoins as you have.
How? The only issues I can think of are when those that convert and trade coins do so more quickly than the market can adjust. A restriction can be placed on how quickly converted coins can be used to avoid such issues. Maybe I’m missing something but you have to spell it out for me.
@Sabreiib I might not have understood everything you suggest. But you say that Shareholders can borrow HYK from the protocol as long as they pledge a certain value of shares that needs to be at least x percentage of the HYK value. Then they can sell the HYK but need to repurchase them to pay back the debt. Then they can then roll over the debt as long as they ensure they can keep enough collateral.
How is a peg ultimately enforced this way? When the value of HYK rises, reduce the collateral requirement to allow more sales, and when it falls, increase the requirement? It sounds like your system is happy to allow some leeway in the peg as the peg is controlled by responding to market conditions rather than creating market conditions. Or it sounds like your system is designed to create a controlled rise in the HYK price as opposed to creating a dollar peg.