How to Earn A 40% Premium with ESD and DSD Coupons by Defi Dad
About a month ago, I wrote about Empty Set Dollar, “a fully decentralized, algorithmically self-stabilizing digital dollar.” The protocol native token is an ERC-20 called ESD, which acts as both a stabilized dollar and as a governance token. It’s been quite a ride for the growth of Empty Set Dollar’s market cap (over 272% the last 30 days), which is really the best way to measure its success. The whole Empty Set protocol is designed to bring ESD back to $1 and so the two major goals are to see ESD remain at $1 while market cap grows due to demand from those participating.
As a reminder, Empty Set Dollar is defined by these 4 mechanics found in other protocols:
- Decentralized - from the start it’s only upgradable via on-chain governance
- Self-stabilizing - using an on-chain price oracle
- Single token - ESD is both a stablecoin and a governance token
- Opt-in Supply Adjustments - With ESD, all supply expansions and contractions are incentivized and voluntary.
In my last post, I mainly focused on how one can bond ESD to the Empty Set DAO to earn more ESD during supply expansions while ESD is above $1. Those expansions every 8 hours (every epoch) can pay holders of bonded ESD as much as 2.85-3%. We just lived through an expansionary period the last 2 weeks of December.
What I didn’t cover last time is how one is also incentivized to participate in supply contractions below $1. Thankfully, one has to volunteer to participate in these contractions so it’s different from Ampleforth where we saw a death spiral of participants selling out of AMPL before their wallet balance grew smaller and smaller
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