Tuwie2, I read the announcement and the whitepaper. Achieving price stability is the obvious part. I'm asking if I understood the HOW which is not completely clear to me.
On the HOW:
The assets of the project will mainly be held in different tokens, but the tokens will be hedged. Meaning - they will have an opposite transaction open of approximately the same value. Profits can be created in several ways, but one of them will be price differences in different countries or different currencies in the same tokens.
For example, if you can buy BTC for 2500 USD in one exchange and at the same time you can sell BTC at a higher price (in order to hedge/eliminate BTC price variability risk) you have a neutral, low volatility position, with an expectation of profits because the difference should close at some time in the future - either by cheap/low price going up or the expensive/high price going down.
A similar strategy would be to buy a token on one exhange and sell on another one, but you would then be subject to price volatility for the time of the transfer. This can be anywhere between 1 hour to 1 day (some exchanges do withdrawals only once every 24 hours). This could still be an acceptable risk, if the price difference is high enough.
Other strategies to be implemented are more complex to describe, some may require more specialized knowledge, such as option pricing.
