Stablecoin bridges

Simple contracts that allow swapping other Swiss franc stablecoins into Frankencoin and back.

The swap page allows you to other recognizes USD stablecoins against OFD and back. Moving back into other stablecoins is only possible as long as there it some of the other stablecoin left in the bridge contract. Essentially, this pegs the OFD 1:1 to other stablecoins and helps stabilizing its value. In order to protect the Frankencoin from a crash of the connected stablecoins, the bridge contract is limited in time and volume. After a year the latest, it needs to be replaced with a new contract.

System participants should closely watch the amount of other stablecoins flowing in and out. Having a lot of outflow could be an indication that it is too cheap to mint OFD, i.e. implied interest rates being too low. Having large inflows could be an indication that going into OFD is too attractive and interest rates too high.