Based on my understanding for the DIGG/bDIGG mechanism, DIGG Is a stabecoin which pegging to BTC by periodic re-evaluation by the supply-and -demand-balance approach. However the bDIGG is about 0.62DIGG and the DIGG price is about 0.66BTC now, and the quantity I deposited does not filling accordingly to compensate, so is it stable anymore or is it actually admitted in a breach status now? Pls correct me if I am wrong or pls let me know what is the problem, since, as a early follower, I deserve to know. Thx.
it’s an elastic supply token that attempts to match btc price. It’s anything but stable. Currently there is not much use for DIGG so people continue to sell because it is rebasing negative everyday. This discourages more people so they sell too and price drops further and the negative rebasing continues until supply becomes thin enough that very little demand can bring it back to par with btc price. This could take a while though and you can loose a lot in the meantime holding it. This is normal for these rebasing elastic assets. Read up on Ampleforth the first one. Also read this. Elastic Finance: Definition, Use Cases and Framework by AmpleSense DAO - The Defiant - DeFi News
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