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RE: How to join the HERO Challenge as Leader and Participant
I wrote some about the theory of HERO recently; my first post suggests that HERO isn't going to work how Stan and company expect, my second digs a bit deeper into why.
Basically, if you're shorting HERO, you need to be aware of the likelihood that HERO should trade on average above its price feed.
Thank you! I'll do some further reading.
I think the HERO concept is interesting, but it contains some weird little hidden risks that stan never mentions.
Thank you so much for your post links! I just finished reading them both and really enjoyed them. I still have a lot to learn, but I think I mostly track with the conversation.
I created some HERO to play around with this and before reading your article I ended up initiating a settlement. I tried selling, but there wasn't enough liquidity. I'm long BitShares, so I currently see HERO as just another mechanism for shorting the USD. The settlement price, currently, seems better than the price I see being traded, so I just went with it. This is my first time doing a settlement, so I'm not completely sure what will happen. My margin ratios are currently above 6:1, but if someone else is at 5:1 or 4:1 and they happen to be the lowest ratio, will they be forced to buy my HERO and give me BitShares? I think that's how things work, but I didn't realize it was based on whoever happens to be the lowest collateralized position.
I agree with you, I think this is a very interesting project, and I like how you are talking about it respectfully and asking important questions. Great stuff. I can't upvote your month old posts, but I'll upvote some comments to spread some love. :)