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