You may be wondering what happens if you send a stable transaction and the price of the XANK coin increases. Does that mean the entire value of the transaction will rise? Not at all. Let’s take a look at a price increase scenario.
Alice wants to send Bob exactly $100. Using Stable Pay, Alice sends Bob 10 XANK coins at $10 per XANK coin. Bob now has 10 XANK coins worth $100.
Bob has 10 XANK in his wallet. But by day 30, the price of XANK has risen to $20 per XANK coin. Does that mean Bob now has $200? No, he still has $100 because it is a Stable Pay transaction.
How? Because the price went up, the Xank Reserve automatically withdrew 5 XANK at $20 per XANK coin from the transaction. Bob now has 5 XANK, but they still equal $100.
A similar thing happens when you send a stable transaction and the price of the XANK coin decreases. Let’s take a look at what happens when you activate a Stable Pay transaction and the price of XANK falls.
Alice wants to send Bob exactly $100. Using Stable Pay, Alice sends Bob 10 XANK coins at $10 per XANK coin. Bob now has 10 XANK coins worth $100.
Bob has 10 XANK in his wallet. But by day 30, the price of XANK has fallen to $5 per XANK coin. Does that mean Bob now has $50? No, he still has $100 because it is a Stable Pay transaction.
How? Because the price went down, the Xank Reserve automatically deposited 10 XANK at $5 per XANK coin to the transaction. Bob now has 20 XANK, but they still equal $100.
