This is really cute. How about a period of exactly one week? Is that in line with what you're picturing? That way the period is much longer than the force settle delay which makes settlement timing less pressing.
This is really cute. How about a period of exactly one week? Is that in line with what you're picturing? That way the period is much longer than the force settle delay which makes settlement timing less pressing.
HERO by comparison only increases 5% per year, I think that one week is far too fast, I was thinking in the month+ range per cycle at least.
Ah got it.
By the way, I think another great formula asset would be SUPERHERO: rather than growing at a measly 5% annually, why not grow at 100%? At that rate, there can't be any doubt that it will trade at a premium to the price feed, and it would be fascinating to see how high that premium might be.
There's nothing stopping you from creating an MPA with such a price feed formula, would it be 100% at the very end of the year or incrementally over the year?
Sure, I could create one, but then I'd have to go find feed producers etc. Sadly that's rather low on my list of priorities at the moment.
Oh, incrementally. Just like HERO, it would increase continuously.
I thought it only increased at the end of the year, it increasing incrementally throughout the year makes it more interesting for sure.
You're right though, chasing up price feeds is going to be an uphill battle. First step is to get the witnesses to acknowledge your existence, haha!
For the token to exist you would have to bet that bitshares would increase more than 100% a year, which is pretty risky. People would much rather short the dollar or the Hero so I don't think you'd have much of a market.
If the token trades at the price feed, then you're right. However, my bet is that the token wouldn't trade at the price feed - it would trade much higher. Probably 10x higher or something like that. In this way, the market would set the effective interest rate - just as it will with HERO.
Because there is a shortage of tokens. Nobody would create the tokens if that were true, meaning an illiquid market. An illiquid market will be plagued with price swings and margin calls, plus a huge loss of money to the issuers.. especially if it were trading at 10x the price feed, which I don't think could be sustained due to the price fluctuations
Trading at 10x the price feed is an unbelievably good deal for the issuers, because it would mean they are on the hook for only 10% of the market value of the token. I agree that that far from the price feed is not very attractive to buyers, but it's still a token that's guaranteed to be worth more than an index that doubles annually. That's actually worth a good deal.
I also agree that it's not a great use case for smartcoins, but I bet it wouldn't be totally illiquid.