Topic: 🚀🚀【ANN】⚡ STATICOIN/RISKCOIN stable solution for traders and merchants 🔥🔥🔥 (Read 159 times)
April 12, 2018, 11:30:08 AM
It's a very interesting idea, although I do not quite understand how this will all work, but if you want to create a stable cryptocurrency - it's cool! Successes
April 11, 2018, 02:02:39 PM
Genki
Financial Services
Staticoin Riskcoin
Remember when a pizza costed 10 000 bitcoins? And now it worth 130 000? Remember when speculation did get high on the bitcoin allowing Ponzi schemes to be in place? You fear a collapse of the monetary system and you cannot find real gold that you can grab within your own hand? The national currency of your country is plummeting and you want to put your saving in something safe?
You are a trader working to supply/extinguish the stock (of) a compagny and you want to purchase or sell thing for the correct price?
Then Staticoin is the solution you need, no profit, no losses. No matter what, 100% non volatile.
Riskcoin, Wanna strong leverage potential? A really cheap money that could be worth a lot at some point ? Riskcoin provide exponential gain or losses depending on ETH fluctuation.
Here is an example of riskcoin fluctuation potential :
This strike level assumes that all staticoins were purchased at $400.
How does it work?
Staticoin provides a stablecoin solution for traders looking for safe haven investment and merchants looking for a non-volatile digital currency.
Potential volatility is offset to Riskcoin which investors purchase for the potential to gain large rewards from this leveraged asset.
Riskcoin Leveraging
Let’s take a couple of examples, starting off where the quantity of each coin is in perfect equilibrium. Staticoin and Riskcoin can be purchased with Ethereum (ETH). The prevailing ETH price is €200 and €2,000 Euros worth of both Staticoin and Riskcoin have been bought. This results in a total of 20 ETH in the contract, 10 ETH each of Staticoin and Riskcoin.
ETH Price = €200
Market conditions have been great and the ETH Price has doubled from €200 to €400. The value of Staticoin as the name suggests is static so €2,000 of Staticoin is now worth 5 ETH. As the value of ETH in the contract is 20, the remaining ETH are attributed to Riskcoin. This means that there are now 15 ETH for Riskcoin at €400 each making the value of Riskcoin €6,000 — three times the starting value. This feature is important, as it shows that investing in Riskcoin is better than simply investing in ETH (when predicting a price rise).
ETH Price = €400
Things of course can go the other way, now the ETH price halves from the original €200 to €100. The value of the Staticoin must remain the same so €2,000 of Staticoin is now worth a total of 20 ETH. As there is only a total of 20 ETH in the contract, Riskcoin is now allocated 0 ETH and therefore has a price of €0.
ETH Price = €100
Why should I hold Riskcoin?
You should hold Riskcoin if you want a leveraged exposure to ETH for very little cost or maintenance. If you consider yourself a “hodler” then you should be interested in RiskCoin as a “superhodl” strategy.
Why should I hold Staticoin?
You should hold Staticoin if you require an asset with the stability of FIAT, but with the usage benefits of an ERC20 token.
Is there ever a demand mismatch?
There is a risk of demand mismatch, especially at the outset. Staticoin are only minted when there are sufficient Riskcoin in circulation. We are currently exploring new ways of floating the RiskCoin asset to enable widely available Staticoin.
The ability to return coins directly to our contracts only ensures that Staticoin are worth “at least” the underlying fiat value. If the price difference is too large then people will create some Riskcoin and immediately create Staticoin to sell on the Exchange.
How do you avoid black swan events?
We are using the 24 hour weighted average price to avoid the risk of flash crashes/whale sales, but a prolonged fall in ETH price (e.g. DAO v2.0) followed by a large proportion of Staticoin holders withdrawing will cause a bankruptcy event in the contract. The last Staticoin holders to redeem their coins will lose out (rather like a bank run).
The initial reserve ratio allows for a 75% fall, but this will vary and the black swan always exists. Any ETH backed (or crypto backed) pegging system fails if the collateral also falls. It’s precisely this effect that we are using to reward risk holders if prices increase. If we get rid of ETH as our collateral or increase the reserve ratio, we lose our incentive to hold riskcoin. Our current solution is to warn explicitly about the black swan risk.
Why is the oracle price so high?
The call to oraclize.it is cheap, but the callback transaction also must be paid for, which they charge a flat rate (200,000 wei?).
If the Riskcoin price value drops to 0, can I create a large amount of Riskcoin for practically nothing and then 3x 6x investment when ETH rises?
If Riskcoin is close to, but still above 0, then yes. The low prices for Riskcoin hopefully will encourage recapitalization of the contract.
If Riskcoin price is at or below 0 then the contract will not issue any new coins, although you’ll still be able to trade them on exchanges or wait for the price to rebound.
Do I have to use the dapp user interface?
No. Creating coins is easy, just send ETH to usd.staticoin.eth or usd.riskcoin.eth (you can swap usd for eur, gbp, cad or jpy) using metamask or similar and you will receive coins in 24 hours.
The easiest way to redeem coins is to use our dApp, or advanced users mayinteract with the functions RetRisk() and RetStatic() on the contract directly. When returning coins, a small amount of ETH is required to pay for the oraclize.it fee, but any excess sent to the contract is immediately returned.
Where is the contract code?
All contracts have been verified on Etherscan, or on the GitHub’s project’s
How can I test the system for minimal cost?
Implementations are available on bothKovan and Rinkby testnets.
The leverage is too higher rate. Can I control my leverage directly?
Leverage is directly controlled by the amount of Riskcoin purchased. If the current leverage is twice your comfort level, simply purchase half the quantity of Riskcoin you were considering.
What sort of scale is Staticoin expected to reach?
This iteration of Staticoin is deliberately small scale. The oracles and exchanges are currently too easily manipulated for any referenced stablecoin system. We have plans for more sophisticated structures (default insurance, order size limits, custom price tickers, quicker minting times, multiple strike levels) which will allow medium scale (>100M€) but they’re not worth considering until the simple system gains interest.
You should hold Riskcoin if you want a leveraged exposure to ETH for very little cost or maintenance. If you consider yourself a “hodler” then you should be interested in RiskCoin as a “superhodl” strategy.
Why should I hold Staticoin?
You should hold Staticoin if you require an asset with the stability of FIAT, but with the usage benefits of an ERC20 token.
Is there ever a demand mismatch?
There is a risk of demand mismatch, especially at the outset. Staticoin are only minted when there are sufficient Riskcoin in circulation. We are currently exploring new ways of floating the RiskCoin asset to enable widely available Staticoin.
The ability to return coins directly to our contracts only ensures that Staticoin are worth “at least” the underlying fiat value. If the price difference is too large then people will create some Riskcoin and immediately create Staticoin to sell on the Exchange.
How do you avoid black swan events?
We are using the 24 hour weighted average price to avoid the risk of flash crashes/whale sales, but a prolonged fall in ETH price (e.g. DAO v2.0) followed by a large proportion of Staticoin holders withdrawing will cause a bankruptcy event in the contract. The last Staticoin holders to redeem their coins will lose out (rather like a bank run).
The initial reserve ratio allows for a 75% fall, but this will vary and the black swan always exists. Any ETH backed (or crypto backed) pegging system fails if the collateral also falls. It’s precisely this effect that we are using to reward risk holders if prices increase. If we get rid of ETH as our collateral or increase the reserve ratio, we lose our incentive to hold riskcoin. Our current solution is to warn explicitly about the black swan risk.
Why is the oracle price so high?
The call to oraclize.it is cheap, but the callback transaction also must be paid for, which they charge a flat rate (200,000 wei?).
If the Riskcoin price value drops to 0, can I create a large amount of Riskcoin for practically nothing and then 3x 6x investment when ETH rises?
If Riskcoin is close to, but still above 0, then yes. The low prices for Riskcoin hopefully will encourage recapitalization of the contract.
If Riskcoin price is at or below 0 then the contract will not issue any new coins, although you’ll still be able to trade them on exchanges or wait for the price to rebound.
Do I have to use the dapp user interface?
No. Creating coins is easy, just send ETH to usd.staticoin.eth or usd.riskcoin.eth (you can swap usd for eur, gbp, cad or jpy) using metamask or similar and you will receive coins in 24 hours.
The easiest way to redeem coins is to use our dApp, or advanced users mayinteract with the functions RetRisk() and RetStatic() on the contract directly. When returning coins, a small amount of ETH is required to pay for the oraclize.it fee, but any excess sent to the contract is immediately returned.
Where is the contract code?
All contracts have been verified on Etherscan, or on the GitHub’s project’s
How can I test the system for minimal cost?
Implementations are available on bothKovan and Rinkby testnets.
The leverage is too higher rate. Can I control my leverage directly?
Leverage is directly controlled by the amount of Riskcoin purchased. If the current leverage is twice your comfort level, simply purchase half the quantity of Riskcoin you were considering.
What sort of scale is Staticoin expected to reach?
This iteration of Staticoin is deliberately small scale. The oracles and exchanges are currently too easily manipulated for any referenced stablecoin system. We have plans for more sophisticated structures (default insurance, order size limits, custom price tickers, quicker minting times, multiple strike levels) which will allow medium scale (>100M€) but they’re not worth considering until the simple system gains interest.
EXCHANGES !
https://etherdelta.com/#EUR_R-ETH https://etherdelta.com/#EUR_S-ETH
https://etherdelta.com/#USD_R-ETH https://etherdelta.com/#USD_S-ETH
https://etherdelta.com/#CAD_R-ETH https://etherdelta.com/#CAD_S-ETH
I am not the creator of this money and I am acting on behalf of the developers… You can check by contacting them.
Jump to: