WCD Oversupply
Last updated
Last updated
WCD Price may temporarily drop below 1 USD in the case of WCD oversupply. In such oversupply situation, below price adjustment mechanism is triggered :
WCD minters can repay their WCD by purchasing WCD at a price lower than mint price (1 USD)
Example : When WCD Price is 0.99 USD, WCD Minter of 100 WCD can purchase and repay WCD for 1 USD arbitrage profit (100 - 0.99 x 100 = 1)
In other words, when WCD Price is lower than 1 USD in oversupply situation, WCD Minters can purchase and repay WCD at lower cost, which eventually increases the demand for WCD — maintaining WCD supply and demand balance.
