2 ms·
I ask two questions to see if passes the smell test: 1. Does this work if the floater is worth 0? 2. Is there some kind of natural cap? In other words, can I
by bko 4y ago
I ask two questions to see if passes the smell test:
1. Does this work if the floater is worth 0?
2. Is there some kind of natural cap? In other words, can I print an infinite amount of dollars?
None of the implementations works without some value being attributable to the floating token(s). Similarly, I never hear of any natural caps. For instance, you can create a stable coin with a market cap of $100 and just mint N tokens of the floater for M where M*N = 100. But why can't you mint more and sell at a slightly lower price? Is there some natural limit? If so, can't the price of the floater go down to such a level to not be able to support the market cap?