someone help me with this pls
Because there is no peg dUSD is not a stable coin
so when dUSD = 1.01, does that not imply that it shld be 1.01 USDT?
No, dUSD and USDT are different tokens, this is akin to asking why doge is not $1, you can not "peg" a decentralized asset. Pegging requires either regulation or centralization. Both of which are against the principles of decentralization
ohh..hmmm. I still dont really get it
So the next step is asking why you believe dUSD and USDT have correlation?
because dUSD represents a dollar and USDT represents a dollar as well?
If you want to look at it that way, but think about USDT, it is backed by a centralized entity that controls the backing, and regulates the value. dUSD is a decentralized token.
but the recent DFIP had the goal of stabilising dUSD correct?
That was the goal, unfortunately it attempted to do that with artificial regulation... But that still would not be a peg.
I see, this is all still quite new to me thanks for explaining 🙂
dUSD is capped at $1.01 according to the oracle price, not the DEX price. The two do not currently agree because major exchanges are not allowing deposits/withdrawals of DFI, thus the CEX's and the DEX can't be fully arbitraged. I believe that dUSD will be capped at $1.01 USDC/T once the pools are fully arbitraged.
Ohh I see! Thanks so much this actually answers my question
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