By eliminating the need for custodial control of assets that come with typical wrappers, the Strudel protocol trades off counter-party risk for market risk while using market dynamics, crypto-economic incentives, and cross-chain capabilities to maintain a pegged, scalable, and capital-efficient ecosystem. This one-of-a-kind economic approach offers average users and big money investors numerous options for monetary growth and grants more diversity and security to DeFi.
"Oh ye seekers after perpetual motion, how many vain chimeras have you pursued? Go and take your place with the alchemists."
— Leonardo da Vinci, 1494
Perpetual motion is the motion of bodies that continues forever in an unperturbed system. A perpetual motion machine is a hypothetical machine that can do work infinitely without an external energy source. This kind of machine is impossible, as it would violate either the first or second law of thermodynamics or both.
Luckily for us we're dealing with the laws of crypto economics, not thermodynamics. The behavior of monetary systems can in fact be modeled using Physic's first principles and the inmaterial nature of it allows for the creation of systems that go beyon the constraints of the phisical world. However, the laws of thermodiamics offer a glimpse of what is required to create an infinitely sustainable monetary system, which in fact is a perpetual motion machine.