For every hero.. there is an arch nemesis! (Idea for the opposite to the HERO FPA)

in #bitshares7 years ago (edited)

black hole

Mirrored on Bitsharestalk

What is HERO?

https://steemit.com/bitshares/@stan/the-hero-from-bitshares-island-5
https://steemit.com/bitshares/@stan/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?

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