Answer: When the growth of DW20 enters the second stablecoin stage, users can issue DW20 coins by mortgaging Bitcoin in the chainless system. As a stablecoin, DW20 is anchored to the U.S. dollar. Within a specific range, the price ratio between DW20 and the U.S. dollar is within a limited range of 1:1, which is subject to certain fluctuations. Just like the Hong Kong dollar and the U.S. dollar fluctuate within the price range of 7.75:1 to 7.85:1. When the exchange rate rises above the upper limit of 7.85, the Hong Kong Monetary Authority will sell U.S. dollars and buy Hong Kong dollars in the market. It will cause the Hong Kong dollar to rise, and the exchange rate will sink toward 7.75. When the exchange rate drops below 7.75, the HKMA will retake action, selling Hong Kong dollars and buying U.S. dollars, and the exchange rate will rise again. When the Hong Kong dollar floats between 7.75 and 7.85, it is considered stable, and the HKMA will take no action. The market-making funds in the DW20 system play a role similar to that of the Hong Kong Monetary Authority. Then, users can use their Bitcoins as collateral to issue DW20 when the price comparison is high and redeem their Bitcoins when the price comparison drops. In this process, users achieve arbitrage and have more DW20. , and naturally, obtain “market-making benefits.” Note that the mortgage and redemption exchange scale is U.S. dollars, thus creating arbitrage space for DW20.
When DW20 is in the meme currency stage, users can issue DW20 by mortgaging Bitcoin. However, it is unprofitable at this stage, so naturally, no one does this. After entering the stablecoin stage, someone discovered that this opportunity had come one day and made the first mortgage arbitrage action. For the entire DW20 system, this is equivalent to Laszlo’s pie, which means that DW20 has completed an “amazing jump,” just like Bitcoin back then.