31. Why “do market-making funds need to maintain a ratio of “50%:50%” between DW20 and U.S. dollars or U.S. dollar stablecoins?

Answer: One of the main functions of the market-making fund is to maintain a 1:1 relationship between DW20 and the U.S. dollar, that is, to form a price of one DW20 coin for one U.S. dollar. In the hands of a market-making fund, if the proportional relationship between DW20 and the U.S. dollar is “50%:50%”, this is the value center of the market-making fund. Since the operation of market-making funds will cause the fund ratio to deviate, this is a gradual return in situ.

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