For example, say 1KMD = 1.00USD at the time you did a paxdeposit, you deposit your KMD and receive KMDUSD. Say the next day, KMD takes a huge hit and halves in price, now 1KMD =0.50USD. If you were to do a paxredeem, you would receive 2KMD back. It is a bit more complicated than this, but its the general idea of how pax works
If you paxdeposit 1 kmd , how can you paxredeem 2 kmd back? Where did the second 1 kmd come from?
Uh, price $1: 1 KMD -> 1 KMDUSD. price $0.5: 1 KMDUSD -> 2 KMD.