Can anyone explain me please what is the network of automatically monitored merchants and custodians?
That means there's a 3rd party that will be always monitoring the network to make sure if the price of WBTC will be always the same as the original bitcoin. WBTC is an ERC asset-backed by real bitcoin.
Also please let me know is the ERC 20 token price can be fixed via smart contract? Lets say 1 ERC token named X could be always worth of o.1 ETH or something.
If that was using the rebase mechanism or backed by the fixed asset and it can be stable as the value of an asset that used to backed such token.
The smartcontract can't make the price will be fixed consider it will be determined by the demand and supply. It can be fixed when it was getting backed like USDT, WBTC, RBTC and many more.
Those assets were backed by the bitcoin, dollar and many more.