How Frequently Do Rebase Events Typically Occur?
The frequency of rebase events varies depending on the specific rebase token and its protocol. Some tokens rebase on a fixed schedule, such as every 24 hours or every 8 hours.
Others may have a more dynamic rebase frequency that is triggered by certain market conditions, such as the token's price deviating from its target by a certain percentage. The rebase frequency is an important parameter of the token's design, as it affects how quickly the token can respond to price changes.
For example, stETH rebases daily.
Glossar
Dynamic Rebase Frequency
Frequency ⎊ The rebase frequency is actively managed by the protocol's underlying code, changing in response to real-time data feeds, most commonly the magnitude of the token's price deviation from its target.
Rebase
Mechanism ⎊ Rebase operations, within cryptocurrency and derivatives, represent a revision of the blockchain’s history, altering the base from which future blocks are built; this differs fundamentally from a hard fork, maintaining chain continuity while rewriting commit history.
Rebase Tokens
Mechanism ⎊ Rebase tokens represent a unique class of cryptocurrency designed with a dynamic supply, adjusting the number of tokens in each wallet based on algorithmic rules or external factors, differing fundamentally from tokens with fixed maximum supplies.
Rebase Frequency
Mechanism ⎊ Rebase frequency, within cryptocurrency and derivative markets, dictates the periodic adjustment of a token’s circulating supply to maintain a target price, often algorithmic.
Rebase Events
Event ⎊ Rebase events, within the context of cryptocurrency derivatives and financial instruments, represent algorithmic adjustments to the circulating supply of a token, typically designed to maintain a target price or peg.
Rebase Token
Algorithm ⎊ Rebase tokens operate through a dynamic supply mechanism, adjusting the circulating token quantity based on a predetermined algorithmic function, often tied to price fluctuations or time-based schedules.