Have you looked at different schemes like djed? Which seems to have an answer to both your concerns (outside world is the influx of a deflationary asset like ada, and there is a usage fee structure in place)?
Basically, they get around the circular relationship by bringing in a third asset which turns the volatile asset holders as taking a long position, not on itself but the other (scars) asset with its independent utility and ability to hold value
Algorithmic stablecoins are provably impossible without continuous funding
Have you looked at different schemes like djed? Which seems to have an answer to both your concerns (outside world is the influx of a deflationary asset like ada, and there is a usage fee structure in place)?
Basically, they get around the circular relationship by bringing in a third asset which turns the volatile asset holders as taking a long position, not on itself but the other (scars) asset with its independent utility and ability to hold value
great post and good explanation!