How do you manage the collateral on 100%?
I lost on that
How do you manage the collateral on 100%?
You put in $100 worth of LINK, you get $100 worth of stablecoin. You put back $150 worth of stablecoin, you get $150 worth of LINK out.
MakerDao: You put in $100 worth of link, you get something like $66 of stablecoin out, AND pay a stability fee.
Anyone: send me a dm through this forum if you are interested in helping out
There is a ton of ETH and BTC in the hands of holders sitting on capital gains that in some jurisdictions (including the United States) would potentially be subject to taxation if converted into another coin or token. There is almost certainly a large market for tax friendly options for holders to participate in defi but delay capital gains at the same time. I recommend considering if such a tax friendly solution can be incorporated here.
And what happens when everything goes down 50%?
People redeem their tokens for 50% the value?
From the medium article: https://medium.com/iearn/introducing-syntheticrebasedollar-a-credit-based-rebase-index-7e6e0ce7c24
“Deposit $100 worth of LINK and you receive 100 srUSD. If the value of LINK increases by +50%, you will have 150 srUSD.”
This example broken down:
Say Link is worth 1 USD. You deposit 100 Link, which is worth 100 USD. You get 100 srUSD. Link increases to 1.5 USD. You now have 150 srUSD. You redeem that srUSD for 100 Link.
The opposite example:
Say Link is worth 1 USD. You deposit 100 Link, which is worth 100 USD. You get 100 srUSD. Link decreases to 0.5 USD. You now have 50 srUSD. You redeem that srUSD for 100 Link.
Great. I understood right then.
Thank you for clarifying.
We should definitely consider making simple products for most people (passive indexing) and more niche products for advanced users like StableCredit with 100% collateralization (if possible).
Unfortunately I don’t understand this financial tool.
- Isn’t holding 1 link the same as holding its equivalent changing srUSD value?
- Why does this token have to rebase? it’s equivalent whether it rebases or not.
If you want to do an “index fund” then we can just have a token that give you the ability to withdraw a % of token in that pool (e.g. token sets), no need to make it rebase and make it depend on LINK.
What am I missing?
If the index is 10 asset in the basket.
The user then requires to deposit the 10 assets based on pre-defined proportions of the index.
What I am trying to say is that you can build these indexes with or without a rebasing token. What matters is that you have a percentage of the index, not the number of shares. Having the number of shares being dollar valued is just a nice UI thing, nothing more.
It would still make it easier for a user to come with 10 ETH.
Deposit srUSD and get into the fund, than doing 10 assets. it’s not UI only it’s more of UX.
As well probably easier from smart contract coding perspective and even Gas fees required to get into the fund. I’m not solidity expert but I can see how this makes it easier than approving X number of assets and committing each one into a contract.
What I am saying is that you can create a contract where everyone can deposit multiple tokens and gives you a token that represents a share. If this token is 1-1 to the dollar value of the pool or not, it does not matter.
See my post here:
TLDR Andre calling it an index (like index fund) was extremely confusing. The value of this code is in creating a very simple stablecoin.
Also, Im looking for people that would be interested in building this with me. Im an engineer. All roles needed, including of course more engineers
I’m an engineer. But not software .
Happy to help with whatever I can, my strong side would be marketing/branding.
I like this personal srUSD index fund idea. However, I could definitely see overspending during good times lead into some problems.
Could the index owner choose the srUSD rebase collateral ratio to suit their risk tolerance? For example, conservative could be under the assumption that the portfolio could drop by a 20% margin and still not liquidate assets?
Your position in the funds is in srUSD.
If you bought 1 index token for 1000 srUSD.
If the fund value now is 800 srUSD.
Then you hold 800 srUSD.
The index value should be reflecting the assets value under it.
The idea is more to make it easy to buy several assets in transaction rather several transactions on ethereum.
Both saving trading fees on Uniswap and eth gas fees
There could be index funds that are 90% rBTC and 10% ETH.
As well 80-20, 70-30 and so on.
Creating these baskets for several leading assets allowing users who don’t want to trade on centralized exchanges an option to buy baskets and save fees.
So I just posted this on twitter, but I think this could be used to supplant Maker and Dai.
I know, but hear me out.
Tokens go into Maker -> Maker prints DAI. DAI price fluctuates like crazy with market-based incentives for it to be brought back to the peg. If DAI goes down, you can repay your loan cheaply. If DAI goes up, you can make more at a profit. You must resupply DAI to recover your funds.
This completely removes that whole second loop. In this case, tokens go into SRD (acronyms ftw) vault, and prints some SRD. The amount of SRD you have will change based on the underlying value of that deposit. My only hangup at this point is how to recover your original deposit if you use that SRD to go buy something with. Seems like that deposit would be forever locked away unless you bought the capital off the market again to unlock it.
Does this make sense, or am I crazy?