$DEBASE - A Composable/Modular Algorithmic Stable Coin Protocol

https://t.co/v3383S9VsP
https://t.co/mAul2JSyWE

A guest post, written by the Debase community.

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Algorithmic stable coin protocols & in particular elastic supply tokens (e.g. AMPL, Base) have emerged as contenders for decentralized price-stable assets. The premise of such tokens is to convert price-volatility into supply-volatility, in search of a price peg (e.g. 1 USD)

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The idea is that at sufficiently large market capitalisations supply-volatility will taper off and you are left with a price-stable asset. So far this has not been the case

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Projects like Ampleforth continue to experience sustained price and supply volatility even as market capitalisation has ballooned. Subsequent iterations have tried to improve on this model by modifying one or more of the static parameters; BASE, RMPL etc., come to mind

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While the subsequent iterations modified a fixed set of ‘flexible’ parameters, the fundamental mechanism of elastic supply tokens remains static. Debase is the first elastic supply token to introduce completely dynamic parameters (16+).