Easy Entry & Exit To The PegNet
The pieces are coming together to make entering and exiting the PegNet seamless to the end user.
The Problem — Complexity
The number of steps to get into and out of PegNet 1.0 is daunting to the average user. Even after buying some crypto, trading it for PEG, burning the PEG into pAssets and converting the pAssets around for a while, when the user goes to exit the system they experience extra friction converting pUSD into PEG. As pAsset conversions into PEG operate under different rules and the user may not have read the details about PegNet and don’t understand about the limitation of the 5,000 PEG conversion per block in PegNet 1.0
If the user doesn’t have the time to wait for the slow conversion of their pAssets to PEG under the 1.0 rules then they end up resorting to selling the pAssets on the exchanges, which places downward pressure on the pAsset prices.
The Solution — Automation
As a solution set up a trading function in PegNet wallets for selling pUSD for PEG via an exchange API. That way the user can easily move from pUSD to PEG, using a trade via an exchange API vs. an internal PegNet conversion.
The first upside is that PEG demand increases every time there is a pUSD to PEG exchange. Secondly, the user gets liquidity, though with some more cost (exchange fee + slippage) than a normal PegNet conversion. With one more exchange API call a user could trade PEG for ETH and be back in the crypto asset they entered the network with.
To enable this Pegnet wallet interfaces could add ETH + BCH deposits and withdrawals as that will offer an on ramp and off ramp for users to enter and exit the pAsset network.
This Completes The Great Entry & Exit Cycle:
If pUSD is over $1.00 then:
1: Trade ETH for PEG.
2. Burn PEG into pAssets.
3. Convert freely between any pAsset to any pAsset.
4. Trade pUSD for PEG
5. Trade PEG for ETH
If pUSD is under $1.00 then:
1. Trade ETH for cheap pUSD.
2. Convert pUSD into any pAsset.
3. Convert freely between any pAsset to any pAsset.
4. Trade pUSD for PEG
5. Trade PEG for ETH
Easy entry. Easy exit.
On & off ramps + PegNet conversion powers + external trading pairs
Wallet Logic, Over User Confusion
Ideally the PegNet wallets will handle the logic for the user. When using the wallet to convert crypto such as ETH into pAssets the following IF / THEN function will save the user a lot of friction and optimize their value entering the PegNet.
When Entering The PegNet
1. If the price of pUSD is over $1.00, then the wallet triggers a trade of ETH into PEG and burns the PEG into the desired pAsset.
2. If the price of pUSD is under $1.00, then wallet triggers a trade of ETH into pUSD and burns the pUSD into the desired pAsset.
When Exiting The PegNet
1. If the price of pUSD is over $1.00, then the wallet triggers a trade of pUSD into ETH.
2. If the price of pUSD is under $1.00, then wallet triggers a trade of pUSD for PEG and then trades of PEG for ETH.
Conclusion
After this logic is implemented, there is nothing for the user to learn.
The entry and exit of PegNet can be handled automatically in the most favorable way for the user & will help with the balancing of pUSD & PEG prices as a nice side effect.
