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24 Chains
Watch Out !!!!
BAG MORE - HODL ON - PROFIT MORE
🚀🚀🚀
Watch Out !!!!
BAG MORE - HODL ON - PROFIT MORE
🚀🚀🚀
Forwarded from Freshmoney1(OYO STATE DG)
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Forwarded from UniversalDaddyInk
THE LUNA/UST DILEMMA
UDI's View (I might be wrong)
UST was backed with LUNA which was the right choice bcos their project is the only one in the space closest to ours although they lack the introduction of a new pricing mechanism and some other fundamentals.
They were doing fine until oversabi made them misdo. They are the only project that got it right partially by backing the problem (Fiat or Fiat Representation in crypto or stablecoins like UST) with the solution (LUNA same ecosystem reserve) in a FORWARD BACKING PROCESS. All other cryptos in the space that I know are backed in a BACKWARDS BACKING PROCESS including stablecoins which claims to be one to one.
Their error came through oversabi and I think it's because they stumbled on that Luna/UST arrangement unknowingly. LUNA itself was meant to use another pricing mechanism in relations to UST if you must back the problem with the solution.
So their biggest error and oversabi came when they decided to change the arrangement by now backing their ecosystem which is meant to be the solution with the problem (BTC). BTC here is directly and indirectly backed by fiat which makes it a BACKWARDS BACKING PROCESS.
BTC might be the first Cryptocurrency but it's like John the Baptist, preparing the way for Jesus and His disciples. The rigidity in the ministry of John also applies, until we see that the BTC ecosystem is already faulty and that it needs a better alternative we might continue in this up and down hypertensive movements forever.
We are still waiting for the Jesus of Cryptocurrencies because most of what we have today are Disciples of John the Baptist (BTC).
Even if you must back the crypto with fiat or fiat backed Cryptos you must make them parallel in that whatever happens to the Fiat or fiat backed crypto doesn't affect your solution, P2P helps in this instance and most importantly no crypto project has tried out new pricing mechanisms which will maintain price despite the buys and sells.
Blockchain and Cryptocurrency gives us the grace to experiment and start from scratch as if we never had experience of how fiat determines price.
Pls don't get confused because some of what is said here might sound strange and even coded. We are Blockchain Experts not Crypto Traders.
FORWARD BACKING PROCESS
You represent the problem (fiat) with the most stable version in crypto (eg UST or UBID), then make sure it is backed by another higher crypto in your own ecosystem (eg LUNA or PKD) making your stablecoin only get her supply from swap from Luna to UST or PKD to UBID. This will also mean that your stablecoin is backed by your other token. These helps for independence of the traditional system or Cryptos that are already affected by the traditional system eg BTC. You can then add an ecosystem based price mechanism or price determinants btw UST and Luna or UBID and PKD then you've perfected your project.
BACKWARDS BACKING PROCESS.
Reverse of the former and basically called backwards process because it still relies on the traditional system or backed by digital fiat. Most Cryptos we actually have are not crypto currencies for real, they are digital fiats or cryptographic fiats.
WATCH OUT for DAO2DAO CHAIN.
WATCH OUT for Pink Duchess (PKD) and UBI-Dollar (UBID)
UDI
UDI's View (I might be wrong)
UST was backed with LUNA which was the right choice bcos their project is the only one in the space closest to ours although they lack the introduction of a new pricing mechanism and some other fundamentals.
They were doing fine until oversabi made them misdo. They are the only project that got it right partially by backing the problem (Fiat or Fiat Representation in crypto or stablecoins like UST) with the solution (LUNA same ecosystem reserve) in a FORWARD BACKING PROCESS. All other cryptos in the space that I know are backed in a BACKWARDS BACKING PROCESS including stablecoins which claims to be one to one.
Their error came through oversabi and I think it's because they stumbled on that Luna/UST arrangement unknowingly. LUNA itself was meant to use another pricing mechanism in relations to UST if you must back the problem with the solution.
So their biggest error and oversabi came when they decided to change the arrangement by now backing their ecosystem which is meant to be the solution with the problem (BTC). BTC here is directly and indirectly backed by fiat which makes it a BACKWARDS BACKING PROCESS.
BTC might be the first Cryptocurrency but it's like John the Baptist, preparing the way for Jesus and His disciples. The rigidity in the ministry of John also applies, until we see that the BTC ecosystem is already faulty and that it needs a better alternative we might continue in this up and down hypertensive movements forever.
We are still waiting for the Jesus of Cryptocurrencies because most of what we have today are Disciples of John the Baptist (BTC).
Even if you must back the crypto with fiat or fiat backed Cryptos you must make them parallel in that whatever happens to the Fiat or fiat backed crypto doesn't affect your solution, P2P helps in this instance and most importantly no crypto project has tried out new pricing mechanisms which will maintain price despite the buys and sells.
Blockchain and Cryptocurrency gives us the grace to experiment and start from scratch as if we never had experience of how fiat determines price.
Pls don't get confused because some of what is said here might sound strange and even coded. We are Blockchain Experts not Crypto Traders.
FORWARD BACKING PROCESS
You represent the problem (fiat) with the most stable version in crypto (eg UST or UBID), then make sure it is backed by another higher crypto in your own ecosystem (eg LUNA or PKD) making your stablecoin only get her supply from swap from Luna to UST or PKD to UBID. This will also mean that your stablecoin is backed by your other token. These helps for independence of the traditional system or Cryptos that are already affected by the traditional system eg BTC. You can then add an ecosystem based price mechanism or price determinants btw UST and Luna or UBID and PKD then you've perfected your project.
BACKWARDS BACKING PROCESS.
Reverse of the former and basically called backwards process because it still relies on the traditional system or backed by digital fiat. Most Cryptos we actually have are not crypto currencies for real, they are digital fiats or cryptographic fiats.
WATCH OUT for DAO2DAO CHAIN.
WATCH OUT for Pink Duchess (PKD) and UBI-Dollar (UBID)
UDI