FAQ

All frequently asked questions will be answered here.

Do not hesitate to reach out for help on our Discord Channel.

How does the price of PAPER stabilize between chains?

The price of PAPER between chains may fluctuate, but when the prices fluctuate this creates an arbitrage opportunity for a trader to buy PAPER from the cheaper chain and sell PAPER on the more expensive chain. By traders taking advantage of these arbitrage events, the price will naturally tend to stabilize around a consensus price between all chains.

What mechanisms help stabilize control the price of PAPER?

The price of PAPER on any given chain can be controlled directly through treasury, by buying back and burning of PAPER. As the protocol grows, so do the number of funds, thereby increasing the effect that the protocol has as a whole to keep the price of PAPER stable. Arbitrage is another factor that can help stabilize the price of PAPER on any given blockchain.

What about security at CryptoLink? We don't hold liquidity for bridging, so no drainage attacks like wormhole are possible. The code is small and engineered to be small, which limits attack vectors. Best practices are used including relying on already proven solid routines such as the openzepplin set of functionality. The website has no server so we can't be attacked like other protocols that have been exploited through changed contract addresses in the front-end.