Topic: 🔵 [ANN][ICO] SOLD OUT! Aurora 🔥 Decentralized Finance and Banking + Exchange 🔵 - page 17. (Read 6491 times)

I would like to say I am vested in this project. This team seems more involved and competent than the etherdelta team.

Supply and demand is extremely important for a currency to keep its stability. If the supply of the currency far outstrips the demand then the price will fall, on the other side if the demand is much greater than the supply then the price will go up too much. While boreals are backed by a basket of decentralized assets it is also crucial that we make sure the supply corresponds with the current demand. This way we can adjust the amount of boreals in circulation depending on market sentiment.
 


The goal is for all of this to be autonomous. We'll design the systems such that it takes in all the information collected and it automatically adjusts both the supply of boreals and loan parameters. At first humans will have a big say in this as it will be a learning experience as we go, but over time we will switch to it being fully run by code.


Early on the target value is 1 boreal will equal 1 usd. Over time we'd like to get away from fiat values all together and tie it to a basket of commodities.

You’ve written that decentralized capital can decide itself which official target value to set. What will be a base of official target cost?

I don’t quite understand if all the information collected from the market will be processed by some kind of automatic algorithms or by the company’s experts.

The company accepts only Eth.

What currencies are accepted as payment for the purchase of tokens?

Greetings. Does anyone know if one can use Aurora MVP client for free?

You say that you will constantly collect info on demand for stablecoin. Can you tell us why do you need this?

Hello. If I don’t mix up anything, the company has sold more than 58% of the coins that were allocated to the sale.

Why you didn't insert video on first post? image of video player that links to the video, sounds like a joke.

What number tokens have already been sold during all Token Sale rounds?

Of course, there will be financial advantages)) Such cycles of purchases and sales will generate income for Aurora.

Boreals are backed by 3 different assets.

First is debt from loans. Say a user borrows 200 boreals, they have to pay back those 200 boreals plus interest on the loan, creating an upward buying pressure on the asset.

Second is reserves in crypto. This will allow DC to buy up boreals when they are trading below the target value, helping push the price back up. When boreals are trading above the target value more boreals can be printed and sold, with the revenue from that sale going into the reserves.

Third is retailer acceptance at the target price (Regardless of what the market price is) starting with IDEX. When boreals launch users will be able to pay their IDEX trade fees in them at a 5% discount. This discount will encourage traders to buy up boreals to pay their trade fees. We will make it so this process can be automated, making it very simple to save some money. We plan to partner with many dapps to have them accept boreals at the target price too in return for profit sharing. This will create a robust network of dapps that accept boreals at the target price.

All three of these approaches are designed to ensure that boreals stay at their target price.

How will the company itself benefit from it?

Maintenance of the target level will be based on the use of decentralized capital. If boreals will be traded below the target price, additional boreals will be purchased at the expense of decentralized capital, it will allow to return the target value to the desired level.

What activities will be conducted by Aurora company in order to maintain target value?

Fractional reserve lending refers to the practice of taking deposits from customers and lending those deposits out to other customers. The bank makes money from interest on the loans and passes some of that income on to the depositor (think of interest on a savings account).

Fractional reserve lending has a pretty negative perception, especially in the cryptocurrency space, but in and of itself it isn't necessarily a bad thing. It's a basic component of how banking works, where people with excess capital (depositors) give it to the bank to lend to customers, and both the depositor and bank profit in the process. The issues arise when the bank gets too loose with it's lending standards and there aren't enough reserves available when the depositors want to withdraw.

In the case of Aurora, it's a little different. Aurora will be taking in Ether (and potentially other cryptocurrencies), and giving out a new stable currency, the boreal. The key here is to manage the reserve levels so that individuals can always exchange their boreals back with Aurora. Per the previous post reserve levels will start very conservatively and lower over time. Additionally, it's important to remember that reserves are only one of the pieces backing and supporting the boreal, in addition to retailer backing through IDEX and debt/loan repayment. These other two components will also generate demand for boreals helping ensure there aren't issues with too many people trying to exit at one time.

Please let me know if you have further questions or check out our whitepaper for the full explanation.

Hello, I hurry to make you glad ‘cause the founders of the company have foreseen it. Don’t worry, they will carry out activities to support the target value))

The target value can fall at any moment, but Aurora company didn’t even think out how it could be maintained at the required level. This may become a big problem for investors, so I’m going to watch the project from a distance.