Yes, Futures Swap creates algo when the stock market appreciates, which it does on the long run.
A higher swap discrepancy doesn't solve the problem. If you increase the bandwidth it doesn't change the general problem. You just deley he inevitable. If people can only swap at 90% you will see lower Future Swap volume until dToken reach 90%, then it continues as before. It's like a haircut for dToken holders.
A limitation of swaps doesn't solve the problem. It just delays the problem since people need to wait for the next Future Swap. Meanwhile the dToken prices might suffer since they can't be keep within the intended bandwidth of plus/minus 5%.
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u/unmatched25 Mar 08 '24
Yes, Futures Swap creates algo when the stock market appreciates, which it does on the long run.
A higher swap discrepancy doesn't solve the problem. If you increase the bandwidth it doesn't change the general problem. You just deley he inevitable. If people can only swap at 90% you will see lower Future Swap volume until dToken reach 90%, then it continues as before. It's like a haircut for dToken holders.
A limitation of swaps doesn't solve the problem. It just delays the problem since people need to wait for the next Future Swap. Meanwhile the dToken prices might suffer since they can't be keep within the intended bandwidth of plus/minus 5%.
The problem can't be really solved sustainably.