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ButtonTokenis an ERC20 wrapper. It takes an underlying asset and creates a new asset which rebases to $1/token while tracking the value of the underlying token.
There will be an instance per underlying asset, for example:
- buttonETH: An asset where each token is $1, but the value tracks the price of ETH.
- buttonBTC: An asset where each token is $1, but the value tracks the price of BTC.
- A user deposits 1 ETH into buttonETH at a current price of $4000. They receive 4000 buttonETH tokens, each worth $1.
- Price of ETH increases to $6000. The user now has 6000 buttonETH tokens, each worth $1.
- Price of ETH decreases to $3000. The user now has 3000 buttonETH tokens, each worth $1.
As you can see, the user's total wallet balance remains equivalent to holding the underlying tokens. However, their tokens now have a stable price and are much more fit for creating contracts and interacting with the Buttonwood ecosystem. An additional benefit is that it saves gas.