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RE: Starship BitShares and its HERO Warp Drive
HERO is potentially going to tell us something about what happens when a smartcoin trades significantly above its price feed; your anti-hero would test the other side of the smartcoin mechanism. It would be interesting, certainly. I expect there would be market pressure to push the token below its price feed, but if it trades consistently below the feed, holders can force-settle and get more BTS than market value - and shorters would be on the hook for that.
If it ever went above the price feed, shorting would be a no-brainer - just like if HERO ever goes below the price feed, buying will be a no-brainer.
But what would its purpose be?
The Hero price feed incentivizes buyers as their holding increases in value for each year they hold it, but it discourages the lender as if they wait a year to pay back the debt they will need to pay an additional 5% back. That said, if Hero is trading above the price feed (people buying into the 5% rise before it occurs) that's a quick bit of profit for the lender after quickly settling the debt
The opposite would incentivize lenders as if they lend the asset into existence, at a later date they would be able to buy back the debt at x% less than they sold it at due to the reduction in price feed. It would however discourage holders from holding the asset for long periods, so we may see an increased liquidity of this token with holders trying to get rid of it as quickly as possible, with a large availability of the asset at the feed price.
With regards to the rate at which the price feed changes, a year is too long to make it worthwhile for shorters because in a year the price of BTS could fluctuate significantly, and 5% is too little per year.
How about 5% per month, but reduced every day 0.001644 (365*0.001644=60.006%)
"One_Dollar * (1-(0.001644 * Days_since_launch))"Though this would only last 608 days until One_Dollar would be multiplied by 0..
MATH!
FEED_PRICE=ONE_DOLLAR/(1+(((60/365)*DAYS_SINCE_LAUNCH)/100))Try that again..
FEED_PRICE=[ONE_DOLLAR|ONE_XDR]/(1+(Reduction_Modifier*DAYS_SINCE_LAUNCH))
This would decrease forever!