- Will it be possible for the Private Smartcoin (PSC) creator to specify which assets can be used for collateralization?
I'm curious. Do you mean to say that a single PSC asset would be backed by multiple different types of collateral? So that someone holding the PSC could choose to redeem any of the collateral types they want from the margin positions?
- Could the price feed for each collateral be set as the last trading price of that asset/PSC pair on the decentralized exchange? That way you only need an initializer and then the price feed becomes blockchain endogenous.
Would such a self-referential price feed really even work? I can understand perhaps only specifying one price feed (between the PSC and one of the collateral types) and having the other ones mathematically determined using the price at which the different collateral asset pairs are trading at on the DEX (assuming you believe the volume of the DEX markets for those trading pairs greatly overwhelms that of any other external market). But I would imagine there would be serious issues if you didn't specify any
price feed at all (unless the price feed was a mathematical function of some other
price feed(s) already existing in the system that you trusted, e.g. a price feed defined to be the product of a USD/BTS price feed and a EUR/USD price feed).
If the above is possible than PSC creators/providers would have exclusively a certification authority function rather than an information providing function.
This could also be achieved by just separating out the roles of the PSC managers and price feed providers. The PSC creator could specify a price feed provider already existing on the blockchain (I suppose in theory it could be the price from a particular DEX market, assuming you avoid the self-reference issue). They could change the source with some delay (e.g. a 2-week delay) to allow people to settle out of it if they didn't like the change (maybe there would need to be a way to allow a super majority of the shorts the option to trigger a force settlement whenever the creator called for a change in the price feed provider, since there is no other mechanism to guarantee enough liquidity in the market for the shorts to settle their debts). Other than that, the PSC creator wouldn't be responsible for providing price feeds. That role would belong to the price feed provider. Obviously, some profit sharing mechanism needs to also be devised to incentivize the price feed providers to properly do their job.