Perspective on Rebase tokens: asymmetric opportunities become game windows, and tightening is more common than expansion
Analyst | Edited by Carol | Produced by Tong | PANews
Analyst | Edited by Carol | Produced by Tong | PANews
The non-dilutive elastic supply model has become popular in the currency circle.
This economic model is called Rebase, and its core structure can be generally expressed as, within a certain period, when the market price deviates from the benchmark price or deviates from the benchmark price by a certain range, the smart contract will directly or indirectly increase/decrease the supply of tokens To bring the market price back to the benchmark price. Tokens using the Rebase supply model are designed to keep the price of the currency basically stable, and therefore, these tokens are also classified as algorithmic stablecoins.
However, the reappearance of algorithmic stablecoins does not mean that they have solved their long-term problems. The core of these questions is whether price stability is a universal demand for industry development? Second, is the effectiveness of the stabilization mechanism long-term and stable? Which mechanism is more structurally superior? PAData will discuss the market performance and game opportunities behind them by comparing various Rebase mechanisms.
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Comparison of Mainstream Rebase Mechanisms: Threshold, Period and Token Structure
In addition, ESD, YAM, and DEBASE all use stablecoins as anchor targets. The difference is that ESD and YAM anchor is USDC, and the base price is set at 1 USDC. DEBASE is anchored by DAI, and the base price is set at 1 USDC. DAI. The most "unconventional" concept currency is BASE, whose anchor target is the total market value of cryptocurrencies, and the base price is one ten-thousandth of the total market value.
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Among these 10 concept coins, 5 tokens, AMPL, COIL, RMPL, YAM and DEBASE, set the threshold of elastic supply, generally 5%. This threshold can also be understood as a certain fault-tolerant price range, that is, when the currency price is within this range, the rebase mechanism will not be triggered. If this threshold is not set, the price "sensitivity" of the Rebase mechanism will be higher, that is, once the currency price deviates from the benchmark price, the mechanism will be triggered.
The last component that affects the rebase mechanism is the token structure, which is the most important of the five basic components. According to the number of tokens that may be involved when the mechanism occurs, the token structure can be divided into a single-currency token structure and a multi-currency token structure. The former is represented by AMPL, and the latter is represented by BAC and ESD. Typical.
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The rebase mechanism of the single-currency token structure is usually relatively simple, that is, when the currency price deviates from the base price or deviates from the base price within a certain range, the smart contract directly promotes the currency price to return to the base price by issuing or destroying such tokens. For example, when 1 AMPL<0.96 USD, the smart contract will reduce the amount of AMPL in the holder's wallet to promote the price return, and vice versa. However, AMPL’s elastic adjustment is not realized at one time, but is completed within 10 days on average, that is, 1/10 of the total adjustment amount is executed every day, but after the adjustment amount is recalculated the next day, the contract will execute the latest adjustment amount instead of Execute the historical adjustment amount, that is, in fact, when AMPL is continuously adjusted, the elastic adjustment performed each time is only 1/10 of the target adjustment amount.
The complex execution mechanism reduces to a certain extent the highly sensitive price responsiveness that may be brought about by the simple token structure, that is, high reflexivity. However, this combination is not necessary. Tokens like BASE do not have a complex execution mechanism designed, and its elastic adjustment is in place in one step, and its price responsiveness is relatively more intense.
At present, the connection between the Rebase concept currency and DeFi is also reflected in the liquidity incentives. Many tokens have launched reward programs. If the token holder becomes a liquidity provider in the AMM DEX, he can get a certain reward.
This can be clearly seen from the current trading market composition of various Rebase concept coins. The main transaction shares of the 8 Rebase concept coins, including BAC, ESD, and BASE, all come from Uniswap. AMPL is currently the most accepted Rebase concept currency in the market. Its main transaction share comes from Hotcoin, Kucoin and Uniswap. Due to the migration problem of YAM, the current YAM v3 token YAM mainly comes from Gate.io.
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The intraday amplitude is generally high, and the deviation of AMPL and ESD from the basic price is low
The purpose of the rebase mechanism is to keep the currency price stable, or stable within a certain range. So, can various Rebase mechanisms effectively achieve this goal?
According to statistics, the average number of days for rebase of 9 concept coins is about 93.94%, which can be simply understood as the occurrence rate of rebase is close to 94%. Among them, AMPL, which has been online for the longest time, has a Rebase incidence rate of about 74.77%. Among them, the adjustment direction of 188 days is expansion, and the adjustment direction of 212 days is tightening. In addition, some concept coins that have been online for a long time, such as RMPL, YAM, and COIL, are also more common in tightening adjustments than expansion adjustments. However, BAC, BASE, DEBASE, REN2 and other concept coins that have been online for more than a month are not only undergoing flexible adjustments every day, but also different from concept coins that have been online for a long time, the direction of adjustment is mainly expansion.
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The process of the rebase mechanism is to flexibly supply tokens according to the degree of deviation between the currency price and the base price. The relative change between the daily fluctuation range of the currency price and the daily fluctuation range of the supply is a window to observe the elastic supply range, which is different from the theoretical currency. It has nothing to do with the price adjustment range, and the relative change between the two reflects the actual impact of the elastic supply adjustment range on the currency price change. PAData sets the daily (estimated) supply as the daily market value divided by the daily closing price. According to statistics, the daily price fluctuations and daily supply fluctuations of AMPL, COIL, ESD, REB2 and YAM are relatively consistent. The average difference of the participants is within 2.5%, of which YAM is only 0.37%.
However, the daily price fluctuations and daily supply fluctuations of BAC, DEBASE, and RMPL are quite different, all exceeding 30%. For BAC and DEBASE, the volatility of the two currency prices is much higher than the volatility of the supply, which means that the elasticity of the supply is not enough to promote the stability of the currency price. For RMPL, the volatility of the supply is much higher Due to the volatility of the currency price, this means that in order to promote the stability of the currency price, a greater supply elasticity has been paid. In either case, it is a manifestation of the lack of coordination between the elastic mechanism and the stability.
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The essence of Rebase is the static game of currency holders. Is currency price stability a general need?
The rebase mechanism determines that currency holders can only make profits through static games. An elastic supply does not mean that token holders will adjust their bids accordingly, and even if they do, they will not all at once. Instead, token holders will respond to supply changes based on how quickly or to what extent they think others will respond.
Judging from the intraday amplitude of the Rebase concept currency price, even for concept currencies such as AMPL and ESD, which have a very low average premium rate to the base price, the average intraday amplitude is above 10%, which means that there are Coin holders have considerable game space. The intraday swings of other concept coins are larger, and the average swing of BASE reached 150.72%. Moreover, comparing the average and median of intraday amplitudes, it can be found that the average is usually significantly higher than the median, which also shows that the intraday amplitudes of these Rebase concept coins are greatly affected by extremely high amplitudes.
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