Altered protocol is an Elastic token that means the supply can be altered algorithmically by expanding or contracting himself every 24 hours there are some conditions we will explain at continuation.
This is when the protocol increases the total supply
This is when the protocol decreases the total supply
This is when the protocol doesn’t alter the total supply
Altered will always try to equilibrate the pool ratio to 1:1 to achieve his goal the protocol is able to expand and contract the total supply, if there is 100 UST in the pool and 50ALTE the protocol will increase the supply in order to have 100UST and 100ALTE
If the volume exchange price is in a range of 5% the rebase will not happen because we are in the equilibrium that’s mean if the price target is 1$ and the current price is between 0.95 to 1.05 we are in equilibrium. If the price is less than the equilibrium zone the protocol contract the total supply resulting in deflationary balances to all holders If the price is higher than the equilibrium zone the protocol expand the total supply resulting in inflationary balances to all holders
When the protocol expand or contract the total supply he does it with a smoothing target to avoid overcorrection at the beginning it will be 30 days and after the algorithm will auto adjust it to 10 days