The project enables a network of small currencies to compete with larger dominant ones.
An increasing number of tokens are being created, which can be considered emerging currencies. However, they often face challenges such as low liquidity, price fluctuations, and exchange fees. It is inconvenient that to exchange one local currency A for another local currency B, one must first convert A to a dominant currency like USDT and then convert USDT to B.
The project is presented through a permissionless, non-upgradable smart contract that facilitates the connection of various community tokens and establishing stable conversion rates between them.
Precision loss: The behavior of the system during the interaction with tokens with significantly different decimals may result in some precision loss.
Tokens are not yet a form of currency: When developing this idea, I was considering small communities that create local currencies to enhance their sovereignty and engage in intensive economic interactions with each other, similar to Balkan countries. However, existing crypto communities and DAOs with their own tokens do not use their tokens as a medium of exchange, at least not for trading purposes. Instead, these tokens are mostly utilized for governance and speculation, so it doesn't make sense for such communities to stabilize their prices because everybody expects to gain profit from the price fluctuations
Poor governance: While the system brings more price stability to the network of currencies, connecting "good" and "bad" tokens can still impact the price of the "good" token. To ensure effective functioning, thoughtful governance is necessary to decide which tokens should be connected and which should not.