Past failed project aside, I'd like to know how you peg your token price at total crypto marketcap. Basically this project is a stablecoin, right? So what procedure do you take to stabilize your token at the said pegged price?
Second, which platform do you use to determine the total crypto marketcap to peg this token's price?
Interesting question here.
If they will based from
https://coinmarketcap.com/ today the global crypto market cap is about $397.77B, so if in case you will take into account the current rate in CMC, their Base token will have a value of about $0.397. But can they really keep this value once their token is already in exchanges? What are their protocols to keep their value in exchanges be pegged to this price?
We'll answer these questions in this response:
1) To determine total crypto market cap, BASE feeds total crypto market cap data from 11 different popular price tracking sources through a Chainlink oracle.
This is already functional, and you can see how it works on the interactive BASE Dashboard:
https://dashboard.baseprotocol.org/2) The way BASE maintains its price peg is through an elastic supply protocol which utilizes rebasing. This means the protocol will adjust total BASE supply, changing scarcity, to influence price to reach the target peg.
Consider this example, where total crypto market cap is $400B:
t1 : Starting Equilibrium (Pegged)
John has 1 BASE worth $0.40.
t2 : Price Increases (Peg Disruption)
John has 1 BASE worth $0.80.
t3 : Ending Equilibrium (Pegged)
John has 2 BASE each worth $0.40.
In this situation, the price of BASE doubled above the peg price. In response, the protocol doubled the total supply of BASE, which brings scarcity down, and influences price to return to its equilibrium. These supply adjustments are called rebases. There can be expansion rebases or contraction rebases.
This is how the peg is achieved.