BitBay’s Dynamic Peg creates two tradable assets: BAY and BAYR. Combined together, they make up one total supply for BitBay.
Roughly every 3.5 hours, the ratio of BAY to BAYR can change by 1-3% (due to the votes of stakers off exchange). Therefore, if your BAY balance decreases, your BAYR balance will increase proportionately… and vice versa.
This change in ratio will first effect your wallet balances both on and off the exchange. If your exchange balance is not sufficient to meet the level of liquidity change, then any buy or sell orders you have placed will be adjusted to meet that level.
Questions, comments, concerns? Please post them in the comments below!