Hey good question! Basket underlyings are static denominations. No rebalancing. If you have a Basket of 0.1 NVDA, 0.1 TSLA and 0.1 AMD these amounts never change. To Mint a basket in that configuration you need 0.1 of Each to do so. But this means Burning the basket returns 0.1 of Each underlying so price does not matter. In fact price changes between the underlyings is what will drive arbitrage.
The real risk is if an Underlying is malicious or is frozen by an issuer. In this case governance can put the basket in exit only mode and designate the underlying compromised. This allows basket holders to burn and get the other underlyings while keeping a claim on the bad tokens in case they get unfrozen or situation changes.
We are all about censorship resistance so we built ways to gracefully handle this.
Options Based Stablecoin that does not use liquidation.
Baskets with STATIC underlyings that come with self reinforcing markets.
An ever growing arbitrage graph that does not need speculation to drive volume.
Borrow your funds without losing yield.
Leverage Loops.
All here.
Statics is going to show DeFi a new type of rewards model.
Staking Statics will give you a chance to earn up to 64 assets inside the system.
Opt into 1 asset and earn from all the pools inside the system that incorporate it. Up to 64 different times.
Watch closely.
Don't know if we are the first but our stablecoin design is inspired by this post https://t.co/GFwVYgf5UZ
We took it a bit further and made it perpetual. We also added a Pegged stability module that can be wound down if required. Its our attempt at censorship resistance without making the product unuseable.
Liken it to Maker/DAI without liquidations.
This is our entire thesis.
Statics protocol is built on the premise that correlated pairs create volume and provide value.
Pay attention more on the launch soon.