=)

Contractibility is a less talked about stablecoin characteristic - it's not strictly necessary to construct something stable, but it can have drastic effects on end users. What is contractibility? 🧵

This is why, for ESDv2, we ultimately chose to use a deterministic model, while additionally providing a framework to allow governance to safely experiment with nondeterministic models over time. 💔

This isn't to say nondeterminism is bad - this is probably the most exciting area of study in DeFi 🧠 - but it's still early and it's risky.

Contractibility is a less talked about stablecoin characteristic - it's not strictly necessary to construct something stable, but it can have drastic effects on end users. What is contractibility? 🧵

@LewisFreiberg This account would be really cool if the person who ran it could read solidity 😅

@eqparenthesis lol

@santiagoroel @dsdproject @emptysetdollar Actually unbonding periods were added specifically to prevent unbonding to purchase coupons since this has a net neutral effect on supply regulation. Coupons only do their job when they take ESD out of circulation.

For $ESD & $DSD, I think shorter unbonding periods during contractions would be much better. If TWAP <1, then # of unbonding epochs = n/2 where n= # epochs to unbond if p>1 DAO & LPs would be able to bid on coupons faster & dampen cycles Thoughts @dsdproject @emptysetdollar

With ESD, our goal was simply to create the best stablecoin. We knew it wouldn't be perfect on the first try, it was more important to build an open platform for collective experimentation. Couldn't be more excited about the vision Scott and Will have put forward. 🏦

🔗 emptyset.finance now links directly to the latest IPFS build.

introducing døllar and the {ess}. @emptysetsquad/introducing-d%C3%B8llar-and-the-ess-f48222b4e138" target="_blank" rel="nofollow noopener">medium.com/@emptysetsquad…

to translate to ethereum, we incorporate ideas from 0x staking, rho, and build on top of uniswap v2 oracles. 3/3

its construction is an iteration on basis and its predecessors, aiming to solve core issues within their mechanics. 2/3

døllar is a fully decentralized elastic-supply stablecoin. 1/3

the mechapunks will decentralize finance.