A very valid question, and I’m glad this is bought up. I’ll try to explain in simpler words, but this is quite technical.
The apparent misconception is that cAssets are algorithmically backed, which is NOT TRUE: cAssets will be over-collateralized by Cosmos assets through the CDP (Collateralized Debt Position) mechanism. The difference is how $UST maintains peg compared to DAI in MakerDAO, and we follow the MakerDAO over-collateralization path to maintain the peg.
As CMDX is the only paired asset with the cAsset pools, the market cap of $CMDX will keep increasing with the pool size and the new cAssets we add.
CMDX MC cannot be tied to a single pool, and there are CMDX pools on other platforms like Osmosis DEX and Junoswap. Hence, there is no correlation with the CMDX market cap.
If anyone ever decides to do something like that, then the person would face a loss as the trade would incur a lot of slippage, and it would not be in their self-interest.
Initially, when the cAsset-CMDX pools have low liquidity, we will have great bootstrapping incentives planned to incentivize early liquidity providers.
If someone decides to drain the pool and the pool becomes imbalanced, then normal users can arbitrage by minting cAssets at the oracle price and get the pool back to a stable state and can make some arbitrage money.