The Pi Network community has found a Chainlink smart contract suggesting a dynamic pegging mechanism for Pi Coin. This aims to curb volatility, potentially leading to a Binance listing and a climb to $5, as Pi Coin stays firm at $1.30 in choppy markets.
A smart contract code mentioning Chainlink and Pi Coin was recently discovered by the Pi Network community.
There may be intentions to stabilize the value of Pi through an automated minting and burning system, as this code suggests the implementation of a dynamic pegging method.
Assuming the finding is true, it indicates that Pi Network may be using a price-pegging method to control volatility, Coingape shares.
This method is frequently employed by stablecoins, whose value is linked to assets like USD or gold, and is used by USDT and USDC, among others. A more stable and predictable trading environment is provided by the system, which also allows for price stability.
A more trustworthy way to value the coin, according to some market observers, would make a pegged Pi Coin more appealing to users and investors. Additionally, they hold the belief that the cryptocurrency, being an algorithmic stablecoin, may experience increased acceptance in decentralized finance (DeFi) ecosystems and everyday transactions.
Nevertheless, the PiCoreTeam must verify the legitimacy of this pegging process.
A novel method of value stabilization through dynamic algorithmic pegging has just come to light in relation to the pegging mechanism of Pi Network. Reportedly linked to Chainlink, the smart contract will take price changes into account and automatically adjust the quantity of Pi Coins. Both of these methods will be employed:
Adding more Pi Coins to the mint when the price falls short of the aim. When the price goes beyond the target, you burn your existing Pi Coins.
The pegged currency, whose name is Pi Coin and which has a goal price of $314,159 USD (or 314,159 × 10¹⁸ Wei, the smallest unit of Ethereum), may be seen in the image below.
When the price drops below the target, the mint mechanism will kick in, and when the price goes up over the target, the burn mechanism will kick in.
According to recent rumors circulating in the town, cryptocurrency exchange Binance may be planning to offer the Pi Network coin very soon.
This has the potential to increase its liquidity, which in turn could push the price upward. By launching on Binance, Pi Coin might cement its position as one of the top 10 cryptocurrencies in terms of market capitalization.
The price of Pi Coin has shown remarkable resilience by remaining firmly at the $1.30 support level in spite of the recent turmoil in the market.
Experts see this as a positive indication, which might mean that the Pi cryptocurrency is about to experience a big surge in value. More and more, market participants are expressing hope for a possible rebound that might propel PI towards the $5 mark.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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