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General Discussion / Re: HERTZ - Oscillating Formula Based Asset
« on: September 23, 2017, 09:23:11 pm »
I've been thinking about HERTZ recently, and thought about what if we simply pegged against BTS and applied the sin wave modifier to that? So the Hertz token would range from 0.5 to 1.5 BTS throughout the month.
Why use BTS as the reference asset?
I suppose it'd be the same as using bitUSD as collateral to borrow bitUSD into existence, except using the core BTS asset.
Steemit post: https://steemit.com/bitshares/@cm-steem/back-to-algorithm-based-assets-and-targeting-bts-as-an-mpa-s-reference-asset
Thoughts?
Why use BTS as the reference asset?
- Less risk of force settlement due to BTS (or reference asset) price volatility.
- Decoupling of BTS from external assets.
- Less likelihood of global settlement events taking place due to reduced forced settlement risk.
- Predictable price volatility, enabling risk-free borrowing given sufficient collateral.
I suppose it'd be the same as using bitUSD as collateral to borrow bitUSD into existence, except using the core BTS asset.
Steemit post: https://steemit.com/bitshares/@cm-steem/back-to-algorithm-based-assets-and-targeting-bts-as-an-mpa-s-reference-asset
Thoughts?