So the purpose of DUSD is to act as a

Question

So the purpose of DUSD is to act as a

point of reference for decentralized assets and ideally we would like it to be 1. But given that the price of DUSD (as with any other decentralized assets), is determined by supply and demand factors within the DEX. There is less DUSD in the ecosystem relative to the supply of USDC, thereby causing the price of DUSD to trade at a slight premium of 6% to USDC.

whether this will converge to 1 depends on whether there will be more supply of DUSD into the ecosystem in future, and its difficult to predict when this will occur or whether it will occur or not, unless extraneous variables are introduced into the system to induce it. (e.g. incentivization via DFIP, maybe some kind of rewards, etc.) .

Natural convergence can occur in theory when the ecosystem grow in size, but for now DFIP is the best hope?

#blockchain #cryptocurrency #defichain #english

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31.01.2022

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Dennis Washington · Accepted Answer

Dennis Washington

The supply of USDC is completely arbitrary to the point as there is no pool between the 2. The fact is that 150% of every 1 dUSD has to be locked up to mint 1 dUSD, so currently with no incentives dUSD will always trend above 1 USDC

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31.01.2022

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So the purpose of DUSD is to act as a

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