# kaal:claim:3396522-015

**Claim.** A well established stable cryptocurrency and a universal exchange form a positive feedback loop: the exchange's liquidity is enhanced by the stable cryptocurrency, and the stable currency's stability and adoption are enhanced by the exchange.

**Type.** mechanism  **Support.** argued

**Holds when.**

- requires a universal exchange bridging traditional and crypto assets

**Source quote.**

> In essence, the combination of a well- established stable cryptocurrency with a universal exchange create a positive feedback loop. The exchange liquidity is enhanced by the stable cryptocurrency and the stability and adoption of the stable currency is enhanced through the exchange.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies* (2019), IV. Stable Cryptocurrencies, 2. Cost Reduction, page 29

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

**Verify.** sha256 of source PDF `ef5031b16aa53476ed618f0bdf92601cd4affb893692c701134bd9cba3ea8acf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies.pdf

**Topics.** defi, institutional-design, tokenomics, economics

**Keywords.** liquidity, universal-exchange, feedback-effects, stablecoins, market-structure

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.