Who provides the capital to maintain the peg’s exchange rate? How are they compensated ?
The beauty of the Dynamic Peg is that no capital (or collateral) is required to maintain the peg rate. The peg exchange rate is simply backed by the volume of the people using the currency.
***Note: Many other stablecoins offer private backing. In our opinion, this model is no different than a privately backed dollar over a government backed dollar. The age-old problem of counterparty risk will always be present in models such as this. A dynamic supply is the only viable solution for sustainable economic growth over time.