Vlog 231: SMT update and automated market makers + Current investment plan.
Yesterday the Steemit team released a new update. This time regarding SMT's here.
What they are doing is building a framework for SMT's and filling it with all kinds of goodies you will be able to use when launching your own token on the STEEM blockchain.
One of these goodies is the Automated market maker (AMM).
I haven't double checked this but my way of understanding the AMM is that it's optional to make a token instantly tradable vs STEEM after launching it. (I'm assuming on an internal exchange on the STEEM blockchain.)
This is cool because no other blockchain can do this.
On the Ethereum blockchain, for instance, you first need to do an ICO, get ETH send to you then sent back the ICO tokens.
Then at some point, these tokens need to be added to an external exchange (Binance, Bittrex) before they can be traded and the price becomes clear.
A lot of hassle for an entrepreneur.
With an SMT it will be so much easier, plus everything stays in the same Ecosystem (Steem blockchain).
Now why anyone would pay STEEM for a newly launched SMT is a cool question. Whatever the entrepreneur is offering needs to be solid and worth investing in.
I can't wait to see what entrepreneurs come up with.
Now again, as a disclaimer, I'm not 100% sure if what I wrote is accurate. I had to detangle this (from the update post) and it's not always easy.
As an example, one piece of meat that we are working on is the automated market maker (AMM). AMMs will enable an entrepreneur launching an SMT to create instant liquidity for their token so that people can immediately begin buying and selling it while also establishing a baseline price level for that token. Leveraging the AMM is an optional feature for an SMT, but those SMTs that do use the AMM will be able to economically bootstrap themselves with a turn-key solution for providing bi-directional liquidity in the on-chain market.
When I learn new things or when I have a mistake I'll let you know.
I talk about it more in my vlog.
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The reason people would pay Steem for a newly launched token is because it is launched by a well established company. 100k entrepreneurs doesn't have to be 100k NEW projects, right? And using SMTs makes perfect sense from a business standpoint if a company wants something resembling blockchain with the hassle of creating and maintaining their own blockchain. I think we could see a fair number of established companies taking advantage of Steem SMTs as crypto goes increasingly mainstream.
@exyle, thanks for this post, i didn't know about this update until i got here on your blog. This is so super awesome. i have said it few weeks back that steem and steemit will take the world by surprise. i am sure we are still in for lots of lovely surprises as this
To be honoust, i expect a lot of airdrops to follow the SMT release date. This is gona be fun! Hope there are a few gems to pick up! I also would like to see some huge company succes stories!
If launch of token on the STEEM blockchain is successful then i am sure steem price will go up .
Wow I am so exited about the future of steem , thanks for sharing this my dear @exyle . Moreover, I am very passionate about what SMT and Hardfork 20 will bring...I am even planning to take advantage of the technology and launch a project using SMT-currently am using ERC20 in my current project and ideas never end. Keep steeming to more success. Today on my post, I discussed issues relating to wants and needs including to peg or not to peg sbd-feel free to send in your suggestions which are always welcomed. I wish you more success.
I agree..am exited too and know that better days are ahead of us. Great comment, upped and thanks to @exyle for this post
Steem is quickly becoming my favorite digital currency, which is interesting considering it started as a social media platform.
good work team!!!!
As you said on DTube, the weather is cold but getting better and the steemit getting stronger with the SMT. Very nice news for entrepreneurs. Thanks for sharing this valuable infos. Have a more sunny days. :)
From what i read, steem will have its own type of exchange, smt's will be listed there and the market maker will be a bot placing buy and sell orders.
Honestly tho they are not very clear in this so far so we will have to wait for more info to see how this is really gonna work.
Quite valuable addition it's goin to be for everybody. As you mentioned no trade fee will as act as another great feature and will attract many people. And it will surely have direct impact on steem price as well. Wow!
Thank You Mark @exyle I am going to listen to your D Tube now before I get some sleep. I am so excited about SMT's and I think a lot of people will see how this really boost's STEEM !
Excellent video friend and honestly i don't know about this update but today after reading your post and watching your video i came to know about it and i think AMM is a good development and it surely give SMT's an edge over ERC20 tokens and all these developments no doubt strengthened the steem blockchain even more, thanks for staying us updated regarding SMT's and wish you a very joyful and cheerful week ahead, Stay blessed