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nir.eth 🌿🟣🐦☁️
@nir
said it before, will say it again: flatcoins are the most underrated idea in crypto
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Marc Zeller
@lemiscate
Explain?
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nir.eth 🌿🟣🐦☁️
@nir
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
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xh3b4sd ↑
@xh3b4sd.eth
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?
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nir.eth 🌿🟣🐦☁️
@nir
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
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xh3b4sd ↑
@xh3b4sd.eth
Thanks for sharing. I heard of the FPI experiment a while ago. What I do not understand is where the required surplus of money is coming from when the index reprices the exchange rate of the token upwards. And my point above was basically like, your CPI is not my CPI so we agree on some wrong version of it while some government screws with the composition eventually anyway. I don't know what to make of that.
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