What Is the “Exchange Rate” between the Wrapped and the Original Rebase Token?
The exchange rate between a wrapped rebase token (static supply) and its original rebase token (elastic supply) is not a constant 1:1 peg. It is a continuously increasing or decreasing rate that reflects the total quantity of the underlying rebase token held in the vault divided by the total supply of the wrapped token.
The wrapped token's value increases or decreases relative to the original as the underlying rebase token's supply changes, ensuring the wrapped token always represents the correct proportional share of the underlying assets.
