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RE: Algorithm Based Assets on the Bitshares DEX!
Thank you for this post! Algo is a fascinating basis to ponder ....
So can I ask why you wouldn't modulate the wave further or even in the case of spendable currencies use an algo to smooth the price action and try to maintain a certain value? I would be very happy to use money that retains its value.
I've seen people float the idea of a smartcoin pegged to some basket of commodities; call it FOOD or something if you want it to have a constant purchasing power for food items. We'd need to agree on a good basket.
The best food basket would be coffee, curry, salad, and burgers but of course that's just my personal preference :)
More seriously, since food prices fluctuate due to changes in supply and demand... what happens if there is a flood or a drought? I don't see who takes the risk in order to give me my coffee curry and burgers at the same price I paid yesterday.
Water perhaps? Though it would have different values around the world..
I like the look of ALTCAP.XDR because it's a basket currency created by the IMF, but it's only applied against 5 currencies. https://www.imf.org/external/np/fin/data/rms_sdrv.aspx
The CFETS basket currency by comparison is based on 24 currencies: http://www.chinamoney.com.cn/english/svcnrl/20161229/2047.html
Do you think there would be interest in an MPA based on CFETS?
The amplitude is already +-50% rising to $1.50 and decreasing to $0.50 so that's quite a large predictable modulation, however the reason it isn't larger is down to stability. You could increase the amplitude if you were to reduce the frequency. The minimal Haskell script enables you to enter any frequency/amplitude/phase for researching potential alternative HERTZ tokens.
We already have price-stable market pegged assets such as bitUSD, bitCNY, bitEUR on the BTS DEX which do not fluctuate heavily from their intended price feed.
I guess the experimentalist in me doesn't mind +/- 80% 90% 100% etc. so I was just curious if 50% was arbitrary. I might play with your script, thank you for sharing it!