Maybe I don't still have the right framework to understand SURGE, how could it climb to $3 as a stablecoin?
Also, is it that SURGE can only be converted to LSTR when a certain condition is met but cannot be sold for HBD, for example, as an exit strategy?
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:
As SURGE is also a token, you'll always be able to sell it for another token at the market price, in case you don't like your investment anymore.
It isnt a stablecoin. We are dealing with a convertible note.
Look that up and you should have a better understanding.
Thanks, will do that!