Contractibility is a less talked about stablecoin characteristic - it's not strictly necessary to construct something stable, but it can have drastic effects on end users.
What is contractibility? 🧵
This is why, for ESDv2, we ultimately chose to use a deterministic model, while additionally providing a framework to allow governance to safely experiment with nondeterministic models over time. 💔
Contractibility is a less talked about stablecoin characteristic - it's not strictly necessary to construct something stable, but it can have drastic effects on end users.
What is contractibility? 🧵
@santiagoroel@dsdproject@emptysetdollar Actually unbonding periods were added specifically to prevent unbonding to purchase coupons since this has a net neutral effect on supply regulation. Coupons only do their job when they take ESD out of circulation.
With ESD, our goal was simply to create the best stablecoin.
We knew it wouldn't be perfect on the first try, it was more important to build an open platform for collective experimentation.
Couldn't be more excited about the vision Scott and Will have put forward. 🏦