Okay nice discussion here. But where comes Coti to this

Question

Okay nice discussion here. But where comes Coti to this

game? Why people should buy Coti? Why Coti should get pumped in general ? This djed Ada shen thing has absolutely nothing to do with Coti or?

#coti #cryptocurrency #english

0

29.05.2022

13 ответов

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Fireflight

Each burn/mint comes with a fee that gets distributed to 2 parties: the SHEN holders get a part + COTI treasury gets a part. So the fees will generate revenue for the COTI treasury stakers, which will increase the APY, which will attract more ppl (so more buy pressure on COTI token)

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29.05.2022

Juri Автор вопроса

Fireflight
Each burn/mint comes with a fee that gets distribu...

Is this in the world possible that this can reach billions of mc worldwide because of this „attraction“ we are talking about in some years? Assumed if djed working fine

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29.05.2022

Fireflight

Juri
Is this in the world possible that this can reach ...

I can't predict the future 😁 But remember, djed is backed by ADA, so it can't possibly have a bigger MC than ADA (unless they extend the reserve pool and allow other asset backings as well). djed will be the main/official stable coin on the cardano network, so it could be very successful if cardano is also successful

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29.05.2022

HeptaSean

Fireflight
I can't predict the future 😁 But remember, djed is...

If the value of ADA goes up, less ADA are needed per DJED (and there are more ADA per SHEN, so there is a nice profit for SHEN holders also).

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29.05.2022

T C

HeptaSean
If the value of ADA goes up, less ADA are needed p...

but at the same time, as more and more ADA get locked up to mint DJED/SHEN then that will also drive ADA price up

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29.05.2022

Fireflight

HeptaSean
If the value of ADA goes up, less ADA are needed p...

Yeah, I really like that mechanism. This makes sure the reserve pool doesn't over-extend the 800% ratio too much when ADA price pumps too much, so it incentivizes burning of shen

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29.05.2022

Cristian

Fireflight
I can't predict the future 😁 But remember, djed is...

we hope that in all this asylum Coti can also benefit as he deserves and increase his value 😁

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29.05.2022

Juri Автор вопроса

It could be nothing Just answer the question: who and what need Coti? Can’t even answer the question :/

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29.05.2022

Fireflight

Juri
It could be nothing Just answer the question: who...

Djed doesn't exist without COTI. COTI developed the smart contracts (together with IOHK) and are running the mint/burn infrastructure. They ask a fee for that in return, this fee is then used to buy COTI from the open market (increasing buy pressure) and is distributed to the COTI stakers (increasing the treasury APY)

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29.05.2022

P D

Fireflight
Djed doesn't exist without COTI. COTI developed th...

But only staking coti makes sense then. What is with holders?

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29.05.2022

HeptaSean

Fireflight
Djed doesn't exist without COTI. COTI developed th...

In fact, anybody could write a contract according to the Djed paper and that contract could do the minting/burning according to the algorithm independently. (I don't care that much if COTI does it. I'm only interested in Cardano and came here just for the details of the implementation that I unfortunately haven't seen up to now.) The only thing that is not simple is the oracle that gives the current ADA/USD exchange rate into the system. Would also be interesting how COTI wants to do that.

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29.05.2022

Fireflight

HeptaSean
In fact, anybody could write a contract according ...

Yeah, except for the white paper, I don't think any other technical documentation is available right now (except for what we learned in the medium articles). As for the oracle, probably they'll be using the same one that determines the COTI price in the treasury, but I'm not sure. Would be nice if this can be confirmed indeed 😊

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29.05.2022

HeptaSean · Accepted Answer

HeptaSean

They are the ones implementing it. And they seem to put an extra fee on it that goes to COTI holders.

0

29.05.2022

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Okay nice discussion here. But where comes Coti to this

13 ответов

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