Author Topic: HERO's arch nemesis! The opposite of 'HERO'  (Read 1824 times)

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Offline R

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HERO's arch nemesis! The opposite of 'HERO'
« on: May 16, 2017, 07:41:12 pm »


What is HERO?

https://steemit.com/bitshares/[member=6]Stan[/member]/the-hero-from-bitshares-island-5
https://steemit.com/bitshares/[member=6]Stan[/member]/starship-bitshares-and-its-hero-warp-drive
https://bitsharestalk.org/index.php/topic,24092.0.html

    "BitShares has a new formula pegged asset (FPA) or dreamcoin called the "HERO" that is mathematically defined to appreciate annually by 5%."

HERO formula:

Feed_Price = ONE_USD * (1 + (0.05 * Years_since_launch))

'Arch Nemesis' formula:

//Vars
Launch_Block_Number = Block number close to 'go-live' launch of token.
DAYS_SINCE_LAUNCH = (Block_At_Time_Of_Feed_Update - Launch_Block_Number)/Blocks_In_One_Day

Feed_Price = [ ONE_USD | ONE_XDR ]/(1+(Reduction_Modifier*DAYS_SINCE_LAUNCH))

Why?

This would create an incentive to lend the token into existence and sell it at the feed price, as when the token decreases in value the debt will be lower. Where the HERO asset creates an incentive for buying the token, this would be an incentive to sell it. Likewise, the switch to reducing the feed price every day provides a faster opportunity for lenders to buy back their debt at a decreased price (as BTS could be fluctuating heavily).

Thoughts?

Please do post, I'd love to hear your thoughts.
Have an idea for an alternative Formula Backed Asset? I'd love to hear them!
Got a better name than 'Arch Nemesis'?
Would you trade HERO against Arch Nemesis?
What would be an appropriate reduction_modifier?

MIRRORED: https://steemit.com/bitshares/@cm-steem/for-every-hero-there-is-an-arch-nemesis-idea-for-the-opposite-to-the-hero-fpa
« Last Edit: May 16, 2017, 08:30:09 pm by Customminer »

iHashFury

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #1 on: May 16, 2017, 09:38:51 pm »
every HERO needs a VILLAIN

Offline Permie

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #2 on: May 17, 2017, 09:10:53 am »
Why would anybody buy VILLAIN if it's guaranteed to be worth less tomorrow?
Surely VILLAIN would need to have some other pro-buyer features to attract them to the asset.

Maybe holding it could be like a lottery ticket?
A small chance to gain +20%, but a definite chance of losing at least -5%.
Could this lottery be paid for out of the least collateralised short or something? (noob)
JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
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Offline R

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #3 on: May 17, 2017, 01:37:29 pm »
Why would anybody buy VILLAIN if it's guaranteed to be worth less tomorrow?
Surely VILLAIN would need to have some other pro-buyer features to attract them to the asset.

Maybe holding it could be like a lottery ticket?
A small chance to gain +20%, but a definite chance of losing at least -5%.
Could this lottery be paid for out of the least collateralised short or something? (noob)
Primarily for the liquidity, there would be a constant supply of it at the price feed unlike bitUSD which doesn't incentivize lending it into existence.
If you hold VILLAIN and you need to liquidate it you could just settle it and get the BTS back at the feed price.

Perhaps the fees earned could be redistributed proportionally to the holders or to the parties involved in filled orders?

-------

A new formula backed asset enters the arena!

Introducing Pendulum!

X_Period = MOD((CurrentBlock-PendulumGenesisBlock),BlocksInPeriod)/BlocksInPeriod    //This will give us a value between 0 and 0.99[.....] (period) continuously.

Amplitude=0.5  //Varying the reference asset by 50%

PI=3.14159265359

Pendulum_Value = [USD | XDR] + (Amplitude*SIN(X_Period*(2*PI)))

Thus we get a formula backed asset which is representative of [USD|XDR] which both rises and falls in a predictable manner, thus having a phase which encourages the sale of the token and a phase which encourages the buying of the token.



https://steemit.com/bitshares/@cm-steem/a-new-formula-backed-asset-enters-the-arena-pendulum

------

Anyone have any other ideas for FBA?

------



« Last Edit: May 17, 2017, 01:59:40 pm by Customminer »

Offline Permie

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #4 on: May 17, 2017, 05:28:10 pm »
Pendulum sounds great.

I am assuming that the objective is to incentivize both shorting and buying so as to stimulate liquidity of the asset.
Eventually most buyers wont care about the swinging pendulum, just that they can buy $10,000 worth RIGHT NOW to trade into the DEX from fiat, and then immediately trade their bitPENDULUM for bitUSD or HERO or something they actually want to hold?
JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
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Offline R

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #5 on: May 17, 2017, 06:44:04 pm »
Pendulum sounds great.

I am assuming that the objective is to incentivize both shorting and buying so as to stimulate liquidity of the asset.
Eventually most buyers wont care about the swinging pendulum, just that they can buy $10,000 worth RIGHT NOW to trade into the DEX from fiat, and then immediately trade their bitPENDULUM for bitUSD or HERO or something they actually want to hold?
I've picked 'HERTZ' as the asset name:

http://cryptofresh.com/a/HERTZ
https://steemit.com/bitshares/@cm-steem/hertz-fba-created

Yes, the aim of this is to incentivize both buying and selling of the asset, it takes the best of both worlds from HERO and VILLAIN.

Yeah trades could be instantaneous if enough market makers seized the opportunity. Even on the way down with users selling there would be incentive to buy the asset because you know that later on in the oscillation the asset will have a feed price greater than the rate you purchased it at (as long as you didn't purchase at the very peak.. just wait till later in the cycle).

EDIT: New thread for the HERTZ token: https://bitsharestalk.org/index.php/topic,24161.0.html
« Last Edit: May 17, 2017, 07:28:09 pm by Customminer »

Offline Permie

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #6 on: May 17, 2017, 09:21:41 pm »
I think it's a great idea.
JonnyBitcoin votes for liquidity and simplicity. Make him your proxy?
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Offline R

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #7 on: August 05, 2017, 03:56:58 pm »
I was thinking about NEMESIS last night.

Say if we were to decrease the feed price at a rate of 0.25% each day, with a start price of $1000 the token would function for 9958 days (~27.29 years) before hitting the max decimal places (0.00000001). If we had a higher starting feed price (Greater than $1000) then we could increase the feed price reduction rate whilst maintaining more than a decade of functionality..

Holding the NEMESIS as long term savings wouldn't make sense, however given that shorters who lend the token into existence would experience a debt destruction rate of 0.25% (+) per day there would be overwhelming sell pressure at (or below) the feed price.

The risk that those holding NEMESIS are left holding a sour bag nobody wants to buy isn't a concern given that they can simply settle the MPA and margin call the shorters. Given that there would be overwhelming sell pressure there would be a very small likelihood of a global-settlement/blackswan as there would be available sell orders at or below the feed price.

Would anyone be interested in the debt destroying Nemesis token? Can you think of a better name, given that NEM exists and nemesis might infringe on resident evil's copyrights (possibly?).
« Last Edit: August 05, 2017, 04:23:31 pm by Customminer »

Offline virtualgrowth

Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #8 on: August 05, 2017, 04:52:20 pm »
Like the sounds of these ideas to some degree but don't like the continuous interest rate.  Anything with an interest rate may destroy itself after thirty cycles.  Whatever those cycles may be.  Brings me back to a special asset that I have been thinking about for longer than bitcoin has been around.  May have to dig up those notes and further explore something that would be between the USD and HERO that may not has so much interest pressure.  But more of a mechanism that minimizes the long tern interest destruction factor that I have some long term concern of.

Offline R

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Re: HERO's arch nemesis! The opposite of 'HERO'
« Reply #9 on: August 08, 2017, 11:25:56 am »
Like the sounds of these ideas to some degree but don't like the continuous interest rate.

It's not interest but rather appreciation of assets by the predictable modification of the price feed.

Anything with an interest rate may destroy itself after thirty cycles.  Whatever those cycles may be.  Brings me back to a special asset that I have been thinking about for longer than bitcoin has been around.  May have to dig up those notes and further explore something that would be between the USD and HERO that may not has so much interest pressure.  But more of a mechanism that minimizes the long tern interest destruction factor that I have some long term concern of.

What do you mean cycles? The hertz sin waves? That'd still be almost 3 years though :P

I'd be interested in reading your previous research.