KCD Undersupply
Last updated
Last updated
KCD Price may temporarily rise above 1 USD in the case of KCD undersupply. In such undersupply situation, below price adjustment mechanism is triggered :
Since KCD is always minted at the price of 1 USD in Kurrency, users can mint and sell KCD at price higher than mint price (1 USD) for profit
In the case of CDP mint, users can purchase and repay KCD that has returned to 1 USD for arbitrage profit and collateral withdrawal.
As illustrated above, when KCD Price is higher than 1 USD in undersupply situation, users can mint KCD at a lower price, eventually increasing the demand for short-term selling of KCD for arbitrage profit — maintaining KCD supply and demand balance.
