110%
create a price floor and price ceiling (respectively) through arbitrage opportunities. We call these "hard peg mechanisms" since they are based on direct processes. baseRate
— making borrowing less attractive which keeps new PUSD from hitting the market and driving the price below $1. baseRate * Maticdrawn
baseRate
calculated?baseRate
state variable in PolyQuity, which is dynamically updated. The baseRate
increases with each redemption, and decays according to time passed since the last fee event - i.e. the last redemption or issuance of PUSD.baseRate
is decayed based on time passed since the last fee eventbaseRate
is incremented by an amount proportional to the fraction of the total PUSD supply that was redeemedbaseRate * Maticdrawn