Exploring Circle: Game Theory

https://d-l.im/research/661d3cc4fc6752a7ad1328ca

A short thread 🧵

"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

Traditionally, there are three actions you make when interacting with a market.

Buying (+1)
Holding (+0)
Selling (-1)

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.

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

In other words, when engaging with Circle.. there are no losing actions

Buying is bullish
Holding is bullish
Selling is bullish

Co-authored with 
@cryptoAVtech
 and major contributions from the rest of the Circle community

Circle: 0x5baBfc2F240bc5De90Eb7e19D789412dB1dEc402
Telegram: https://t.me/BurningCirclePortal
Twitter: https://twitter.com/CircleOnBase
Website:

Co-authored with 
@cryptoAVtech
 and major contributions from the rest of the Circle community

Circle: 0x5baBfc2F240bc5De90Eb7e19D789412dB1dEc402
Telegram: https://t.me/BurningCirclePortal
Twitter: https://twitter.com/CircleOnBase
Website: https://circlecoin.blue/