If you have ever seen these metrics:
and you couldn’t make sense of them, then this post is for you
Although it has been thoroughly explained in the whitepaper, we are going to try and simplify that explanation here for you. So let’s see:
What is this all about?
The protocol works on the basis of two buckets (a fictitious term created for helping explain how this model works):
- Bucket 1: It contains both DoC and BPro. As you can see in the picture below, there are 139,872 DoC in this bucket with 209 BPro that absorb their volatility. Hence the low leverage, because there is too much collateral in BPro for each DoC in the “bucket”. Overall, if we add up the equivalents in BTC of both the DoCs and BPros contained in this bucket, the output will be 266 rBTC (see picture below).
- Bucket 2: It contains both DoC and BTCX. At the time of writing, there are 1.496598M DoC in this bucket, along with 25.75 BTCX absorving volatility. This equals to 51.5 rBTC (see picture below).
By adding both rBTC values (266+51.5), you can obtain the total amount of rBTC (or what is to say, BTC) in the Stablecoin protocol.
If you add both DoC values (139,872+1.496598M), you will obtain the total DoC minted at the moment.
When BTCX are minted, DoCs are moved from Bucket 1 to Bucket 2. When you redeem them, the opposite happens.
Hope this help clarify some of your doubts.