I ask two questions to see if passes the smell test:
1. Does this work if the floater is worth 0?
2. Is there some kind of natural cap? In other words, can I print an infinite amount of dollars?
None of the implementations works without some value being attributable to the floating token(s). Similarly, I never hear of any natural caps. For instance, you can create a stable coin with a market cap of $100 and just mint N tokens of the floater for M where M*N = 100. But why can't you mint more and sell at a slightly lower price? Is there some natural limit? If so, can't the price of the floater go down to such a level to not be able to support the market cap?
1. Does this work if the floater is worth 0?
2. Is there some kind of natural cap? In other words, can I print an infinite amount of dollars?
None of the implementations works without some value being attributable to the floating token(s). Similarly, I never hear of any natural caps. For instance, you can create a stable coin with a market cap of $100 and just mint N tokens of the floater for M where M*N = 100. But why can't you mint more and sell at a slightly lower price? Is there some natural limit? If so, can't the price of the floater go down to such a level to not be able to support the market cap?