Content
@
0 reply
0 recast
0 reaction
Dvd
@d6
Exploring Circle: Game Theory https://d-l.im/research/661d3cc4fc6752a7ad1328ca A short thread 🧵
1 reply
3 recasts
5 reactions
Dvd
@d6
"Markets bottom not on the presence of new buyers, but the lack of new sellers." This is the defining idea behind Circle, and the design of the CCTP
1 reply
0 recast
0 reaction
Dvd
@d6
Traditionally, there are three actions you make when interacting with a market. Buying (+1) Holding (+0) Selling (-1)
1 reply
0 recast
0 reaction
Dvd
@d6
For Circle: Every time we bottom, we are starting at a higher price floor than we did before. Along this Uniswap AMM curve outlines all potential prices for Circle This top red line is the Price Ceiling and the bottom gray line is the Price Floor Nothing below the gray price floor is a possible price for Circle.
1 reply
0 recast
0 reaction
Dvd
@d6
During an uptrend, the price floor moves up. Buying activity contributes in generating fees for the burn During a downtrend, the price floor moves up significantly faster (as high as 30x) Selling activity contributes in generating increased fees for the burn The CCTP responds dynamically, burning more to compensate
1 reply
0 recast
1 reaction
