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RE: STEEM POWER EXPOSURE - FOR YOUR HODL ASSETS - SMART CONTRACTING WAYS to LEVERAGE All of Your Crypto's
That makes perfect sense thank you. So I could place $5k of any crypto (assume btc for example) into the smart contract and get the equivalent delegated Steem power to use as you see fit?
That’s awesome.
I still don’t see how it’s generated though. If you use btc (as per example) and btc goes up by 100% but Steem drops by 90% you still get all of your btc stake out I assume? How?
It's generated with the smt - utility token.
Because The btc is going into a smart contract - this enables the utility token to be unlocked and utilized as collateral for steem-power.
Because it's the smt- utility token enabling the access to the steem - it's backed up as legitimate because the btc is secured in the smart contract. Meaning you can't pull out the bitcoin without relinquishing access to the steempower.
The smt is utilized as a stable crypto that matches up to the value of the btc. For example the smt is always equal to the btc you put into the contract. It also means that the btc in the smart contract in terms of settling/stopping the smart contract is always equal to the initial amount of steempower received. This is an interesting dynamic because it keeps things balanced.
Example:
1 BTC into SMT Contract.
Price of STEEM/STEEM POWER is established relative to the current price of 1 BTC.
Contract is locked in at this rate.
Contract is executed with SMT which results in the steempower being delegated to your account.
If this were to happen - it would be best to settle the contract. As you release your Bitcoin from the smart contract - the steem power delegation is removed.
You could then start a new contract. Which would result in more steem power!
That’s crystal clear. Many thanks for that. I am really interested in this and will definately be taking g part when launched. I would love to help with this but I doubt I am technical enough to offer any useful assistance.