Prv tokenomics

Hi, I feel like I should know the answer to this, but I don’t. If I swap like btc to eth on incognito it would go btc->prv-> eth. Would this help the price of prv or would it not?
Thank you!

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If your going from btc to eth you could skip the prv part so just btc -> eth

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PRV is a utility token, it’s price is directly determined by liquidity.
If you exchange from pBTC -> pETH you are utilizing PRV as the go between. Under the hood you are actually going pBTC -> PRV -> pETH.

The price of PRV increases as liquidity and prices of crypto increase. However you have to handle the amount of PRV being generated from staking as well (Supply Increase). Since you are using PRV on every trade you are also validating it’s usecase as a utility coin which also gives PRV value.

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Dammn Professor @Revolve…now that was a hell of an explanation…thank you Sir…but then most of your posts are always so excellent and informative… :sunglasses:

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@ijw03 I think it is better to write the transaction like this (cc. @robenzo_421) :

BTC --> PRV
PRV --> ETH

The reason is you are interacting with two different pools. My initial thought when cross pair trading was implemented is that this was a “net zero” effect, but that was actually untrue…

When you sell BTC to buy PRV, you will increase PRV price in the BTC/PRV pool… Then you are selling PRV for ETH, which lowers the price of PRV in the ETH/PRV pool…

Now, depending on the size of transaction and the liquidity of each pool involved, the trade on the two different pools could have a larger/smaller price swing of PRV due to the AMM governing those pools. If a large discrepancy does occur, the arbitrage bots will surely come in and swoop up those gains to equalize the price, but you can really see this play out more when some is doing a cross pair trade to stablecoin (i.e. ETH–>USDC) and the subsequent trades that happen on the other stablecoins to equalize the price (USDT, DAI)

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