Analysis of some basic principles of algorithmic stable coins

in LeoFinance2 months ago

1. There are two algorithmic stablecoins on the market, one is ampl; the other is composite stablecoins such as esd\bac. Since the concept of rebase was put forward by the amplifier, the most frequently imitated currency this year is the stable currency of the rebase concept. The more imitated, the more innovative and the more difficult the concept is. If you understand all of them, there is no need for imitating.


2. Amplifier anchors the actual purchasing power of one U.S. dollar in 2019, which is different from one U.S. dollar. Therefore, the median rebase value of 1ampl this year is slightly higher than one U.S. dollar. As long as the U.S. dollar continues to print, this median value will continue to shift. In the future, it may be US$1.1 or US$1.5. For example, 1ampl = actual purchasing power of 1 US dollar in 2019 = face value of 1.3 US dollars in 2030, even 100 years later, 1ampl = actual purchasing power of 1 US dollar in 2019. This is the "fundamental value particle" I am talking about. Just like the proton in the real world, it is eternal and unchanging. 1ampl=1 U.S. dollar actual purchasing power in 2019. The time coordinate is added to permanently fix the value, achieving eternity at the mathematical level, like btc The same as the upper limit of 21 million.

3. There are two things about the amplifier, one is the "fundamental value particle", which has a fixed position when the project is released, which is what 2 talks about. The other is to let people recognize this positioning. Using amplifier as a unit of measurement in the blockchain world is to capture the market consensus on this positioning. This is an extremely difficult long-term operation.

4. Theoretically speaking, as long as the market recognizes it, the entire network can be as long as one amplifier, which is a fixed exchange rate, such as 1ampl=0.0000001btc;1ampl=0.0001eth;1ampl=0.001uni, the entire network may have ten million different token, but as long as the market recognizes it, just use an amplifier to mark it, but—but—this is impossible. The blockchain economy is a fully competitive and effective market, and it is impossible for tens of millions of tokens to not produce transactions. It will automatically form an exchange rate with the amplifier, remember: only transactions can tap value and generate prices! ! ! For example, for a new alice token, even if the entire network recognizes the basic value particle positioning of the amplifier, the entire network does not know the value of the alice token, so the alice token must be traded with the amplifier to know the value of the alice token. Price can only be set by transaction! The transaction generates a price! Therefore, it is impossible for the entire network to have only one amplifier to complete the pricing of all tokens. For each new token, the corresponding number of amplifiers must be issued to complete the effective pricing of the token. At the same time, a certain token will die or decrease in value. Must deflate the corresponding number of amplifiers. The total value of the entire blockchain economy network is constantly changing every second, and the total value changes are priced through countless transactions with the amplifier. The number of tokens is unlimited, occurring at any time, and the transaction volume is always changing. Pricing is always changing and in an unstable state. The ultimate purpose of amplifier is to find value and price the whole network-the economic measurement unit of the whole network.

5. Is the total value of the entire network equal to the total value of the amplifier? No, the relationship between the two is the same as the current m 2 and m0. In the real world, the relationship between the two is about 10:1, and the blockchain economy is super fluid Sexuality will make the ratio of the two become 20:1 or even 100:1. For example, the total economic value of the entire network is 100 million amps, and the actual issuance of amps is 5 million amps calculated as 1:20.

6. The value particle function of the amplifier is endogenous. As mentioned in 2 above, the stablecoin concept has been positioned, but the market does not currently recognize it. This can only be achieved through long-term operations. It is too early and not enough. Don't talk about the volume of btc, the volume of btc now plays a roller coaster from time to time.

7. The amplifier project party has a clear understanding of this, so in the early stage, it is positioned in the asset function, an asset that changes through price and quantity. Through continuous transactions, the asset will eventually become the most marketable product. This product is currency.

8. I think there are two problems with the later multi-currency stablecoins on the market: First, I want to establish a rule by myself to stabilize the price, such a small volume and so few consensus, extremely narrow coverage, and complicated rules. As a result, market feedback cannot be directly transmitted. Some big players are still maintaining pricing. How can pricing be more universal for all participants in the network. The second is anchored at one dollar of legal currency, which is essentially different from amplifier. I have discussed before that there is a permanent one-way (depreciation) offset in the value of legal currency. These multi-currency stable currencies are anchored in one The unsteady subject matter wants to be a unit of measurement. This is a logical error in the bottom layer.

9. I think there are two effective pricing methods: one is the legal currency pricing method, where only one party is the national mandatory pricing, and the other is the pricing of all participants, which is the pricing of the amplifier. The former is suitable for a society where information coverage and transmission are not smooth, and the latter is tailor-made for the information society. The pricing methods between the two are bound to be eliminated by both. (The Federal Reserve has a preliminary human-style market pricing method, but here it is also attributed to national pricing)

10. The current opponent of the multi-currency stable currency is usdt\usdc\dai. In the mid-term, it is the diem of Facebook, and in the later period, it is the digital dollar of the Federal Reserve. Coin, what logic is this?

11. All currencies in amplifier and 9 are different. They are completely two different species. Those are legal currencies, and amplifier is an eternal and stable value unit at the mathematical level. This is currently qualitatively different. In this way, it will be recognized by the market and become a pricing unit, which then actually reflects the total value of the entire network.

12. The price of btc is flexible, and the quantity is continuously increased over a long time span (the upper limit is 21 million); the price of amplifier is flexible, and the quantity increases and decreases in both directions. The current adjustment time is 24 hours. In terms of sensitivity, amplifier is much higher than btc.

13. The total economy of the entire network is constantly increasing, but the speed of additional issuance of btc is getting slower and slower, and the exchange rate is permanently rising unilaterally, which will inevitably lead to the mentality of users reluctant to sell, so btc will never look back on the path of assets. The total value of ampl fluctuates in both directions on the time axis, and the user's attitude of reluctance to sell is not strong, so the liquidity is stronger, and the commodity with the strongest liquidity and most stable value in a market will naturally become currency.

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