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Yea, if the public trades in Solana. But they are out of $320M in ETH which is way more used then Solana.
by ddalex 5y ago
Yea, if the public trades in Solana. But they are out of $320M in ETH which is way more used then Solana.
- ww520 5y agoYeah, so they accidentally expanded the supply of Solana tokens by $320M. Whether it's a good thing or bad thing, no one is sure.
- 22c 5y agoThey didn't expand the supply of SOL, they "expanded" the supply of wormhole bridged ETH, or rather returned the liquidity ratio of bridged ETH to 1:1. Bridged assets are really just an IOU issued by the bridge, all the assets remain in custody of the bridge on whatever network they came from (in this case, Ethereum mainnet). As long as you can take that "IOU 1 ETH" to the bridge and get back 1 mainnet ETH, everything runs smoothly. If you can't, the market will decide the value of those IOUs accordingly.