Topic: 🔵 [ANN][ICO] SOLD OUT! Aurora 🔥 Decentralized Finance and Banking + Exchange 🔵 - page 18. (Read 6466 times)

At this point we are not sure what the ideal level is. The plan is to start with full backing and then lower it over time. We can look at various countries during the free banking eras (https://en.wikipedia.org/wiki/Free_banking) and see that many banks were able to have extremely low reserve requirements because their customers liked their currency so much. For example in Scotland banks only had about 2% reserves because that is all they needed.

Along with Ether, AURA will be used in our reserves early on meaning we will start with 400% reserves or higher. Over time I hope we can get it a lot lower as that limits our exposure to price changes in the reserve assets.

Reserves are needed for 2 main purposes.

1) Users will be able to come to DC and redeem their boreals for the ether backing them. Like traditional banking reserves must be kept on hand to pay out those who wish to withdraw.

2) Reserves will also be used for market making boreal around the target price. For example if boreals drop to 95 cents we will use the reserves to buy them off the market and get the price back up to the target price. If boreals are trading above 1 dollar we will sell more until the price goes down to a dollar, all ether from that sale will then go into the reserves.


Great question! The reserves will come from a few key sources. The biggest is IDEX, all trade fees from IDEX will be put into the reserves to back boreals. Second is fees from boreal loans and also any revenue from market making. Users will also be able to buy boreals from the bank, further increasing the reserves.

40% of the AURA tokens are slowly hitting the market through our growth hacking programs. Before they are paid out to users they will also be used to back boreals. This way there will be tons of collateral on hand right away to expand boreals. As the AURA tokens are paid out they will be replaced in the reserves with ether.

This is a great idea! Love it! We'll definitely be exploring this further but I think you have hit it spot on with offering loans to those who will them buy servers and help run our network. Thanks for the suggestion!

Great question! The main reason is because we are trying to make a decentralized financial network that can compete with traditional banking. To do this we cannot have any connection to the legacy financial systems, including holding reserves in fiat. Ideally Aurora is just as decentralized as bitcoin in the end.



Initially reserves will be in ether but over time we will most likely expand to other extremely liquid decentralized assets. We're a bit weary of using ICO tokens for them as their use is a lot more limited than a token tied to a platform (such as ether).

You write that the reserve will correspond to the indicator of the ideal level of reserve. Basing on what data will you calculate this indicator, if it isn’t a secret?

Hello friends! I’ve seen the info that the company plans to switch to a fractional reserve model in the future. Can anybody explain me what kind of model it is?

Hello! I looked through your website and white paper. I really liked your idea. I believe that this project is waiting for a great future.I added myself a signature. I will definitely follow the platform's news on social networks. I wish success to all who contributed to the development of this project!

I am also curious about your trading bot systems... who do I talk to if I want to host one of those?

I am interested in the following point: how will the reserve fund of decentralized capital be formed after the launch of the platform?

Elaborate on the way in which you will use the reserves of decentralized capital as liquidity for the development of the boreal resources market?

This looks like Medici Gold. I am eager to see the stablecoin in action. I'm sure Golem or other players will deploy distributed AI hosting before long, and I'm excited to see you are positioning yourselves accordingly.

I wonder if upcoming AI servers and server farms are an early area where you would be eager to offer loans. Better than farms, I think, is the idea of a server in every household. Something to keep our solar panels and battery packs busy :-) ---- what I mean is, the AURA and DVIP and upcoming BOREAL coins should be well positioned to benefit from a robust,  distributed AI architecture, according to your road map ... and I believe it would make good sense to find small players who can host a $50,000-$100,000 server, offer them a loan, which they can repay by simply deploying Golem or some such system.

With current infrastructure, ETH is strong, but nodes are still vulnerable to disruption. It looks like you are planning for a day when trade volumes are scaled exponentially. Proof of stake, where applicable in the Ethereum ecosystem, will definitely make a difference in terms of scaling solutions ... but the AI backbone is going to be essential in moving any of these heavy lifting projects forward. Right?

I hope lenders will find the people with a house, and a free electric line, and a high speed internet connection, and offer them a loan for solar panels and a server... are revenue generating assets that millions of people can practically plug and play so long as they live in a sturdy house with internet access. That way, barriers to entry are low, and we take advantage of existing assets, including a more equitable distribution of wealth in the wired class.

Disclosure: I have bought more than one DVIP token for myself. I also hold GNT and mine ETH on NVIDIA GPUs. Thanks and I look forward to posting and trading soon with the other DVIPs!!!

Happy new year and BEST WISHES for 2018.

Good afternoon. Can you explain your decision to keep the reserves of decentralized capital in Ethereum?

basically this project is very interesting with small supply. I think the market will become more expensive in the future. good luck.

Well, ‘cause the storage in Ethereum ensures that the funds will be controlled only by decentralized capital. In case of using fiat currencies you won’t have such a guarantee.

Why wouldn’t you keep reserves in fiat currency?

Sure, no problems) The main sources of the reserve fund will be interest on loans through decentralized capital and income from IDEX. One can also include the proceeds from direct purchases of boreal in this list. And a few more items, too.

Hmm, thanks for the info, but I can’t open the white paper for some reason, maybe Adobe Reader needs to be updated. Can you list them here quickly?

There’s a lot of sources of formation of the reserve fund of decentralized capital. You can find them in the White Paper on page 11.

I see no guarantees that the reserve fund of decentralized capital will grow in the future when the service starts to work stably. I can’t even imagine what the sources will be needed for its replenishment.

Hi, and thanks for you interest in participating in the bounty! We did not find the bounty to be a very effective use of our time once the sale was in full swing and as such we decided to end it early. You can see in the thread that it was very well executed and we had quite a lot of participation. We had also pushed back our sale a bit and didn't want to make the bounty hunters work longer than we had agreed.

In regards to the token sale, yes we have taken a bit of an unusual approach with the membership (DVIP) purchase and the network token (AURA) airdrop. DVIP is a crypto membership that comes with free trading on IDEX until 2021 and double AURA rewards (from the rewards program https://tinyurl.com/AuroraRewards) for life after the free trade period is over. To use the membership all you have to do is hold the token in the same wallet you use for trading on IDEX (do not deposit it to the exchange). The smart contract and system will do the rest, automatically calculating how much DVIP you hold (if less than 1) and giving the trader the appropriate discount.

Each DVIP also comes with 50,000 AURA tokens. AURA is our utility token that will be used for POS staking our sidechain once IDEX moves from ethereum mainnet to an ethereum sidechain for scaling. AURA token holders will stake our chain and get paid in IDEX trade fees for providing the security to the network. As Aurora expands into decentralized banking the revenue from that venture will also flow back to AURA stakers for running the network.

So for each DVIP you get free trades on IDEX for 3 years, double AURA rewards for life after that and 50,000 AURA tokens. DVIP works now and AURA will be used for staking as soon as we have our sidechain live.