/biz/ - Business & Finance

The narrative shift towards xETH being a safe hedge in cryptocurrency is beginning to take form. I give it two weeks tops before the following pasta gets unironically posted/marketed in future xETH threads, on medium articles, and so on when this starts getting actual attention.

"As the cryptocurrency world breaches new transformational territory at the behest of DeFi, the digital asset field remains a dangerously correlated and wildly unpredictable mess. While honorable attempts have been made, the need for an attractive and reliable hedge against the market, that is not tied to traditional, external assets (such as fiat or metals), and actually provides consistent financial incentive those who simply hold it remains pressing. We aspired to create a token based on the elastic supply model, that A) is price-based upon a stronghold digital asset, and B) utilizes existing investor psychology and behavior to enforce its stability. This would be achieved by selectively rewarding holders and taxing sellers, instead of distributing all positive and negative elasticity effects evenly amongst the userbase. Ethereum is the heart of the modern DeFi Ecosystem. By using it as a base (at a base ratio of 1:100, ETH/xETH), and eliminating negative rebases via our sell-burn mechanism, we believe we have created such a token. As such, while the elastic mechanisms of the xETH supply are designed specifically to react to the price of ETH, the dynamic of distribution discourages a direct correlation to Ethereum and the broader market, and encourages stability in times of palpable fear or greed. We bring you something altogether different. We bring you: Xplosive Ethereum.

Carrot: Meet Stick
The xEthereum ecosystem was specifically designed to reward holders while punishing sellers."

Don't say that you weren't warned in advance.