dcrdex
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tokens/discussion: What to do about a paused token.
It's unfortunate, but tokens can be "paused". This is part of the some token interfaces. It is separate from the erc20 interface which means tokens may not implement it, but its seems pretty common.
When paused, transfers of the token are not possible.
You can see the pausing ability present in USDC and Tether.
This issue is an attempt to get consensus on what to do if paused.
I'm guessing this event is extremely rare. Maybe even rare enough to not worry about it and do nothing. Have USDC or USDT ever been paused? I'm not sure where to find this data.
If we do nothing, trades will fail and users penalized. Bad actors may be able to take advantage of the unpause timing and refund after they already redeemed for another coin, but I don't think we can prevent that.
Maybe the server could automatically shut down a market if it detects a pause. But again, maybe never happens.
Does seem very unlikely, and also a risk traders accept when using these centralized stablecoin tokens.
If there is anything for us to do, I agree @JoeGruffins that it could be server suspending the market. However, that's not gonna help swaps already in process. So, I think this is low priority, but something that's worth investigating.
