As @taskmaster4450le said - SURGE is not a stablecoin
It has a $1 floor price but has no capped upside. It can trade for $1.21. $2.21. $4.20. $69...
The liquidation preference of $1 means that you can liquidate SURGE for $1 per SURGE. This protects the downside for any investors in SURGE.
The upside of SURGE is the ability to convert it to LSTR tokens. As LSTR rises, the intrinsic value of SURGE rises (since SURGE can convert to LSTR at any time).
3 factors drive the SURGE price upward:
- $1 floor price ensures downside protection (you know it's always worth at least $1)
- Conversion to LSTR builds intrinsic value (you can convert to LSTR at any time. As LSTR rises, SURGE rises)
- Dividend yield is $0.15 per SURGE. At the presale price, the effective yield is 21% right now. If SURGE's price drops, the yield increases - driving more demand. As SURGE increases, the yield becomes less relevant and people will focus on the conversion value