CASCADING PREPOS
Pseudo-
REPOButerin Ethereum blockchain is full..https://cointelegraph.com/news/vitalik-buterin-talks-scalability-ethereum-blockchain-is-almost-fullEnvironment: ETH High Market Value High transaction fees (Blocktivity congestion)
BTS Undervalued Market Low transaction fees (Blocktivity abundance)
Solving the (mini) Whale problems...
Suppose portfolio asset: Blue (ETH) Whale - 5100 ETH Grey (BTS) Whaele - 25m BTS
Motivation: Blue needs to pay for a child's college tution and also wants to buy Gold for that child for the long term because he's currently engaged in divorce proceedings.
Grey needs a binder deposit in seven days or less to secure a purchase contract for a coveted piece of real estate bid on at auction or lose out to a rival bidder.
Problem: Blue has a limitation on his ability to liquidate assets until the financial and tax due diligence is completed by his spouse's law firm.
Grey has very little time and does not want to be forced to liquidate his holdings at such an undervalued
price which will certainly undergo slippage and may even cause a price plunge.
Neither Blue nor Grey wants to pay unnecessary high ETH transaction fees and both have high blood pressure.!
Pseudo REPO = PREPO #442
HTLC #8711
BLUE swaps 500 ETH with GREY for 2.75m BTS Duration: 30 days w/Rollovers Daily Interest Rate: 0.0010958%
HTLC #8711a BLUE allocates 1000 ETH as collateral MCR= 200%
GREY allocates 5.5m BTS as collateral MCR = 200%
{Could convert to [specific or Universal] StandBy HTLC }
Note:For Newbies Borrowing from oneself -
https://steemit.com/bitshares/@sc-steemit/how-to-borrow-from-yourself-on-the-bitshares-platformActivities: BLUE produces $25k bitUSD leveraging BTS 1.316 m as collateral with MCR = 2.0
BLUE produces $20k bitUSD leveraging BTS 1.026 m as collateral with MCR = 2.0
So he exchanges $25k bitUSD for BTC and transfers to the child's Coinbase acct. for the tutition
He converts $20k bitUSD to fiat (via BTC) or P2P (Bitsy) and purchases gold bullion bars from a local dealer.
https://d.tube/#!/v/agorise/kvbh7rumaww He will use the remaining BTS received to produce bitGold smartcoins to start his Gold hedge.
A CASCADE could be generated if BLUE instead had swapped 1000 ETH for 5.5m BTS
and allocated 2000 ETH for collateral.
and after completing PREPO #442.. initiates a new 30 day PREPO #443.
Firstly uses ~3.0m BTS to short bitGold smartcoins (~ 23oz/660g) with MCR > 300% (~US $35k)
and then swaps the bitGold for BTC. He then uses BTC to exchange for stablecoins, USDT, bitCNY,USD,EUR,KRW, etc.
and subsequently for any other cyrpto asset desired..{LTC, XRP..etc..}
With large enough volumes the CASCADE could continue to leverage various assets received.
=========================================
GREY converts 150 ETH to fiat using his CEX account (Coinbase.etc.) to be able to fund the binder deposit.
GREY uses the remainder 350 ETH to generate a CASCADE HTLC
A CASCADE is generated by starting a new PREPO #444 with GREY swappng 100 ETH for 25K XMR
and allocates 250 ETH for collateral. MCR= 250%
He splits the XMR into a 50% long postion and exchanges 50% for a basket of stable coins to be able
pounce on any buying opportunities that surface in the 30 day contract or extended Rollover period.
Again, large enough CASCADE volumes can generate a multiplicity of opportunities or deal with more complicated
motivations.