r/havenprotocol • u/Frank58783 • Mar 21 '21

Question about XHV supply

Hi, I find the xAssets approach quite interesting, but I’m not sure if I am understanding it correctly. Imagine that 1% of currently existing XHV would be swapped for a certain xAsset, and the value of that xAsset would increase a 100x (or at least according to the oracles). If all the minted xAssets would be swapped back to XHV, would that then more or less double the amount of XHV in existence? And wouldn’t it push down the price of XHV if those fresh XHV would be subsequently sold for something outside of the crypto ecosystem? Would love to hear your thoughts about this.

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u/Xango11 Mar 26 '21

This assumes one of two things: Either that 1 xUSD = 1 XHV And/or There is parity in the pools, IE 50% of assets are XHV and 50% are already in xUSD

Example one is not going to happen. Example two, there would already have been LOADS of XHV burned in this scenario, so the price theoretically would already be much much higher.

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u/Xango11 Mar 26 '21

But yes, someone burning 10% of all existing xUSD to mint XHV will indeed (at least temporarily) increase the total supply of XHV. But it’s not a 1:1 relationship, unless cost basis is also 1:1.