01 - What is a Basket currency & prices walkthrough with 2 reserve currencies - KomoDeFi Videos

What is a two Reserve basket currency?

A two Reserve basket currency is a type of currency that is made up of two different reserve currencies, each with a weight of 50%.

What is the liquidity provider token for a two Reserve basket currency called?

The liquidity provider token for a two Reserve basket currency is called Pure.

What is the difference between a centralized issuance basket currency and a liquidity provider token in the web 3 world?

A centralized issuance basket currency, such as the SDR issued by the IMF, is made up of major currencies and is issued by a centralized authority. In contrast, a liquidity provider token in the web 3 world is a token that is used to provide liquidity in a decentralized exchange, and is not issued by a centralized authority.

What is the concept of base and quote in pricing things in a basket currency?

The concept of base and quote refers to the way that prices are expressed in a basket currency. The base currency is the currency that is being priced, and the quote currency is the currency that is being used to express the price of the base currency. For example, in the btcusd notation, Bitcoin is the base currency and US dollars are the quote currency.

How are base currencies and quote currencies arranged in a pricing table for a basket currency?

In a pricing table for a basket currency, the base currencies are listed in the rows and the quote currencies are listed in the columns. For example, in a table that prices things in varus, varus would be listed in the rows and the quote currencies, such as Bitcoin, would be listed in the columns.