WaykiChain(WICC) WUSD Good to Know (2)|Eco-Triangle Formed by the Three Cointypes in WaykiChain Ecosystem


When the stablecoin mechanism performs well, the amount of WICC locked by the system will gradually increase. However, quantities cannot be locked indefinitely and most WICC cannot be locked in CDP. At this point, there’s a concept in the system called the Debt Ceiling. If the number of WICC locked is too much, once the market comes to extreme situation, by this it means that WICC ‘s price in a rather severe case of dramatic drop during a very short period of time, and the number of CDPs needed to be liquidated in the system will rapidly increase, then there will be a large amount of WICC to sell, leading to price of WICC falls, which could make a stablecoin system collapse, and even causing the damage of WaykiChain ecosystem. So when designing stablecoin mechanism, Debt Ceiling is designed to avoid this situation.


The value support of WGRT comes from stable fee + penalty. These two expenses become higher, WGRT achieves bullish. The benefits are associated with the circulation scale of WUSD. The broader the circulation scale, the more benefits. CDP decides the stable fee and penalty proportion in accordance with each specific situation to WGRT market volatility and the pledger. If the CDP maintains good performance, it will not be liquidated, the stable fee will thus be high. If there are more liquidated CDPs, then the penalty will be high.


The price trend of WGRT is related to WICC.

If WICC has a good trend and there is a high bullish sentiment in the market, then there will be more holders using the stablecoin system for leverage. If positive cycle is started, there will be more pledged WICC, which will further promote WICC rise. As the number of pledged WGRT increases, it means that the scale of WUSD is also increasing. From the relation between WUSD and WGRT, it can be seen that WGRT will also be appreciated.

In a word, WICC price raises, WGRT price raises. If WICC is falling, the number of WICC needs to be liquidated, then stablecoin system will increase correspondingly, and the penalty will increase, which will support the price of WGRT. However, there may be negative sentiment and the fear in the market to affect the overall operation. So if WICC drops dramatically, WGRT has the possibilities to continue bullish.

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