DeFi

said it before, will say it again: flatcoins are the most underrated idea in crypto

building @yup

try crossposting to farcaster and twitter at yup.io . join /yup

Stablecoins that peg to the CPI-adjusted dollar rather than simply the dollar, essentially inflation resistant. This already exists and is successful just very hard to market

Would have lower interest rates I imagine. More stable to borrow than other non stable cryptos

Seems great as collateral terrible to borrow

I think the math is CPI % change = Flatcoin % change in dollars. If the CPI goes up by 3% in the last month the new peg becomes 3% more than what it was the previous month. 

FPI is an example of a flatcoin that tries to achieve this. Launched in 2022, pegged to $1.11 right now 

In most cases projects use the CPI-U via chainlink and plan on migrating to their own CPI calculation over time

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems. Building https://testnet.uvio.network. 

I think the math is CPI % change = Flatcoin % change in dollars. If the CPI goes up by 3% in the last month the new peg becomes 3% more than what it was the previous month. 

FPI is an example of a flatcoin that tries to achieve this. Launched in 2022, pegged to $1.11 right now 

In most cases projects use the CPI-U via chainlink and plan on migrating to their own CPI calculation over time

https://docs.frax.finance/frax-price-index/overview-cpi-peg-and-mechanics

Assuming you could automate the value change of one token according to the CPI and guarantee the adjusted value exchange, how is the CPI the yard stick here? And whose CPI is the right one?