A token whose total supply automatically expands or contracts based on demand to maintain a target price. Each holder's balance changes proportionally. OHM and AMPL use elastic supply mechanics.
A token whose total supply automatically expands or contracts based on demand to maintain a target price.
Each holder's balance changes proportionally.
OHM and AMPL use elastic supply mechanics.
This is a key building block of decentralized finance. Understanding it helps you navigate DeFi protocols safely, evaluate yield opportunities, and avoid common pitfalls.