Real markets are driven primarily by three factors at their core: (a) inflation that encourages participation and spending in the ecosystem; (b) trading and arbitrage opportunities; and © underlying value of the traded asset derived from use cases. While recent algorithmic stablecoins have inflationary incentives, they lack sufficient arbitrage opportunities as well as use cases. Basis Cash came to the limelight after introducing bonds which made some improvements to the arbitrage opportunities. However, problems still persist and thus Dynamic Supply is seeking to address all of the above.
DST and DSTR are also now listed on CoinGecko
As with Basis and its many forks, when the main stablecoin falls under $1, bonds are issued which can be redeemed at a 1:1 quantity rate for the stablecoins when the stablecoin is back above $1. After witnessing the live market action of algorithmic stablecoins such as Basis for a while now, we have recognized that these innovative systems are plagued with a major issue — Anticipated Value Loss (AVL). This AVL can be attributed to the following problems:
To solve the problem of AVL, additional arbitrage opportunities must exist with built-in deflationary mechanics to counteract inflationary mechanics, and create sufficient total market value (i.e., TVL) with minimal slippage and volatility. Such stability through better arbitrage opportunities with steady inflationary growth can therefore lead to new innovations and decentralized services built on top of the market.
We propose the following roadmap that we believe can achieve these objectives:
This is the exploration and innovation stage for DST use cases in new decentralized on-chain services, with DeFi examples including DEX’s, lending, insurance, mixers, and more. As DST maintains stability through high TVL and arbitrage opportunities, it becomes more viable to use it in a larger, practical ecosystem. We are also exploring other passive incentives for holders of DSTR that contribute to maintaining stability of the market.
A overview of the DST-DSTR DeFi ecosystem
In a traditional market, innovation attracts market participants who subsequently trade off the various representative assets behind such innovations. On the contrary, in DeFi, the underlying tokenomics attracts market participants but often in an unsustainable manner; these tokenomic models should be designed to achieve true stability with incentivized rewards through algorithmic growth (steady inflation) tied to actual use cases.
DeFi is still a new and emerging field, in which tokenomics play a critical role. We will continue to keep an eye on how the markets respond to these tokenomics, thus it is possible we will add or modify the Value Creation mechanics presented in our roadmap. While seemingly a complex system at a glance, once understood it is a rather elegant means to provide various mechanics for market choice to rebalance pools and maintain stability. More details will be shared as we get closer to each mechanic release. Our goal is clear — create stability and sustainability, while innovating to build a self-sustainable ecosystem that is open to, and supportive of, the entire crypto field.
Dynamic.Supply is a decentralized algorithmic stablecoin inspired by Basis.
Rapid experimentation and deployment within an open-source environment enable DeFi protocols to continue pushing boundaries. In this case, we’ve modified contract variables to increase the speed of emission while reducing the amplitude of swings above and below target, ultimately aiming to bring the system to equilibrium in weeks rather than months.
DST: https://app.astrotools.io/pair-explorer/0x706b21bf60adb79d2326d39086e4c27766193185
DSTR: https://app.astrotools.io/pair-explorer/0xe03a36e18aeddad9cf778d5c3d6ea0b83ce7d577
DST: https://www.dextools.io/app/uniswap/pair-explorer/0xe03a36e18aeddad9cf778d5c3d6ea0b83ce7d577
DSTR: https://www.dextools.io/app/uniswap/pair-explorer/0xe03a36e18aeddad9cf778d5c3d6ea0b83ce7d577
Please add our communication channel to keep you up to date! Looking for more information…
☞ Website ☞ Explorer ☞ Explorer 2 ☞ Social Channel ☞ Social Channel 2 ☞ Message Board ☞ Coinmarketcap
Would you like to earn many tokens and cryptocurrencies right now! ☞ CLICK HERE
Top exchanges for token-coin trading. Follow instructions and make unlimited money
☞ Binance ☞ Bittrex ☞ Poloniex ☞ Bitfinex ☞ Huobi
Thank for visiting and reading this article! I’m highly appreciate your actions! Please share if you liked it!
#bitcoin #crypto #dynamic supply #dst