Im not super technical but quite fascinated by this project. Thats why I privided some Liquidity and staked my Badger. Now I got some Digg airdropped and I’d like to use it to provide Liquidity on Uniswap for the Wbtc/Digg Pair. But the ratio is 1 Digg to 1.5 Wbtc. Isn’t it supposed to be equal or am I missing something. Any coacing apprechiated
Glad you are fascinated by this project. I am too. There are a lot of things to be excited about and so much more to come.
I would encourage you to read more about elastic assets, rebasing mechanics and how they work. Do try to really understand it: is fascinating.
One good article is:
There are a lot of resources in the Ampleforth website. And also this one with some DIGG faqs: https://www.notion.so/DIGG-FAQ-6048eb6dadba4e21813c6477a2e92593
The only think I don’ like about this last article is the use of the word “peg” that can be misunderstood.
The price of DIGG targets the price of 1 BTC, but it is not really a “peg”. It is just a target price to trigger the rebasing mechanis, which expands or reduces the total supply as required.
So, if for example, the price of DIGG > 1 BTC, the rebasing mechanism expands total supply. So everybody has more DIGG tokens, but they are worth the same. Of course during the day people do trade, buy and sell, so price does change according to supply or demand. Price can keep increasing and if that happens, the next day a rebase is triggered. This keeps happening until there are enough tokens in the market so supply and demand are in equilibrium to bring the price near to its “target” price.
Of course if the price of DIGG < 1 BTC, the same thing happens but the opposite way: supply is reduced. Everyone has less DIGG tokens, until everything is in equilibrium again.
It is a very interesting experiment with a lot of use cases.