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YFLUSD

Q: How does YFLUSD supply get adjusted?

When demand is rising, the blockchain will create more stablecoin. The expanded supply is designed to bring the price down. When demand is falling, the blockchain will buy back stablecoin. The contracted supply is designed to restore the price. Algorithmic stablecoins are designed to expand and contract supply similarly to the way central banks buy and sell fiscal debt to stabilize purchasing power. For this reason, we refer to Basis as having an algorithmic central bank.