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General Discussion / Re: HERTZ - Oscillating Formula Based Asset
« on: January 29, 2018, 04:43:47 pm »But to think about, if a blockchain like STEEM or GOLOS paid out rewards with such a token. risk probability could be considered of printing % of anual inflation in said token? perhaps some restriction of settlement maybe. Less often would a arbitrary limit of the total allowable debt be breached, and perhaps higher limit set.?
Steem & Golos don't maintain their USD reference peg though, SBD is currently ~$6.50 right now each. If this Hz token proves successful, then its introduction on other graphene chains would be fine - everything Hertz is MIT licensed. Don't know how the effect would be though given that these pegged assets don't maintain their peg.
Also understand the total allowable debt as a function of the powered up token. With a projection of this value possible examining the the component of it in a powering down contract
In Steem and Golos examples where ratio powered up : powered down, tends to exceed 1, makes this projection better.
The Hertz variables could be modified dynamically depending on external factors, sure - you just need to make sure that it doesn't introduce too much volatility.
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Think about the Market BTS Market Hertz : BTS.
When BTS behaves volatile either swinging up or down in real terms and from average. Understand someone may prefer sell BTS token for BTS Market hertz to realize profit on upswing but remain invested in BTS, or to mitigate losses on down swing, but still remain invested. These are new options, and are naturally met with converse options That apply to this new investor in BTS Market Hertz.
There's always been the option to use bitUSD to evade falling BTS prices & likewise to sell bitUSD to buy cheap BTS when it's increasing in value.
The appreciation/depreciation of debt is indeed a valuable new concept that's not been explored elsewhere (AFAIK), it introduces new trading strategies in BTS for sure.
Think of BTS Market Hertz as part of an investment portfolio and being able to trade the BTS market while maintaining this investment trivially.
Not for long term holding, since there's limits to the price feed appreciation. But sure, buying low and selling high would be pretty simple. It is however highly experimental which is a risk in of itself.
Other considerations:
BTS Market Hertz as the preferred collateral rather than BTS in a system such as bitshares.
Anyone can create an MPA which uses Hertz as the backing asset, similar to how XCD uses bitUSD as collateral. I'm not sure of the implications of such a smartcoin
The volatility of a market can be measured i.e VIX.
Interesting, https://en.wikipedia.org/wiki/Variance_swap Variance swaps sound similar to Hertz except centralized & generalized.
What would the VIX value of Hertz be?
Daily change of 2%, 364 trading days in the 28 day calendar, 2*square_root(364) = 38.157
2*square_root(28) = 10.583
https://www.investing.com/indices/volatility-s-p-500-historical-data VIX is currently 12.99
Anyone could create their own Hertz style smartcoin which was pegged against one of these established VIX/Variance-Swap mechanisms.
new type of price-feed: subject the number of days in the average to democratic process, variable which witnesses decide dynamically.
What if each witness monitored a burn/null role's memo data for burn transactions - the more smartcoins destroyed the greater the impact on the smartcoin's settings. Imagine a tug of war, the more destroyed against A causes appreciation, more destroyed against B causes deppreciation.
If a smartcoin is destroyed, there's debt without associated liquid smartcoin, so theoretically more will need shorted.
Permanently locking up collateral by burning smartcoins is next level!
