there a plan when we see the normal price?
The price on the decentralized stocks depends solely on supply and demand. Only by minting them in a vault you can do it at the real price, after that abd when selling, the price you will be able to gain on them will depend on natural market forces, namely supply and demand. And currently, the demand by such in huge, so it may take a while for them to lower in value, if they lower...
That means it's realistic stock token price will never be the same price like normal stock price? Why are we giving them a name like AMZN then? That would mean actually the token has nothing to do with the normal stock anymore or am I wrong?
The example you give is called AMZN because the oracle price that is used (Nasdaq for example is one of them) tracks the value of the real asset, which is used to mint the equivalent dstock at the real price, that you can after that sell in the DEX for a profit since users are trading them at a premium price at the moment, due to high demand and low supply. Nothing refers that they will need to forcefully have the exact price of the real asset when traded in the DEX, simply because they are being traded in decentralized finance, so a different market that has no connection to the regulated market. Make no mistakes, being traded in a decentralized market has a lot of value for many users, who cannot access a broker or are not even allowed to. With this, they can therefore acess such market in a decentralized way and acess the possibility to short or long the respective price indexes, since the minting is made against the real market price. Therefore, the real market price sentiment can be translated into the decentralized finance world and a user can profit on it, and even be willing to pay a premium price for an opportunity that it would not be allowed to have otherwise, even at a lower price, in the traditional finance markets. I see no disavantage in this, by the contrary. Anyone wanting to profit on such, can perfectly open a vault if meeting all the conditions for such, mint a dstock at real price, and then sell it for profit at a premium price in the DEX, which users are clearly willing to pay for an opportunity of further profit.
Thank you for explaining. I just asked a friend if he knew that and he didn't too. But with this infos my investment strategy changes a lot. Good to have you here! Just with Liquidity Mining it means actually the price just can go higher, right? Because if I want to reinvest the rewards I have to buy stock tokens. Only if some big holders say they want cash out, then the price can go down.
No problem, glad to help 😀 Just with LM, you'll need to pay the premium price because you are not minting them, so you'll gain rewards for a few days/weeks just ro cover that premium first, but the price can go higher or lower, as it's based also on supply and demand from the DEX. Neverthless, your rewards will not feel this as they are based on the amount of shares you will own in the pool facing the total number os users in that same pool. Therefore, the same effects of a traditional LM pool with no dstocks will be observed, namelly imparmenent loss. But considering the actually high APR in these pools, and that it's been very high and stable through time (3 digits APR since the launch, never went down from that yet) the gains are very good and an investment can easily be doubled or more in less than a year.
Someone started the conversation on Reddit about the premium prices on the dStocks. It definitely creates much confusion and limits severely the numbers of people willing to invest into them, even though they are by all measurement a success in many ways. But we'll be fighting this over priced concept forever if they stay far off oracles. We already see great success on bringing dUSD down to oracle. We should allow all dStocks loans to be paid off with DFI. This will be an incredible upward price push on DFI chasing much less supply and greater demand for more DFI. This would moon the coin and Blockchain! I don't see any way possible theses synthetics could be classified as Securities. Just not realistic. Share your thoughts and opinions and let's make it a DFIP for next round! https://www.reddit.com/r/defiblockchain/comments/snlox0/paying_back_dtokenloans_with_dfi/?utm_medium=android_app&utm_source=share
They also do go up and down with the price movement of the actual stock based on the oracles. Just at a higher point.
This is a great oversight, dUSD is still nowhere near compliance with the oracle, and in turn we have a mass amount of unbacked dUSD. I do understand that this was part of the concept, but it is the worst possible way to obtain parody, it is price manipulation / regulation purely to maintain face. This is the exact basis of the US dollar, there is no backing and it's value is maintain at all cost regardless of the consequence. So in turn allowing all dTokens to be paid off would allow for unbacked dTokens. It seems the main goal lately is "mooning" not building a better system. So while this may allow DFI to "moon", it will cause irreparable harm to the ecosystem, and to the future of the project. Defichain has done so much to further the decentralization of finance, and I get with the mass influx of users some are here for a "quick buck", but we should not give up the goal of decentralization, for regulation. P.S. for this post there is no apology, just presenting why doing something just to cause a moon, that will collapse as it is implemented to stuff the bags of the people already holding large bags, and manipulating the misunderstanding of the community to do it, is not furthering anything aside from the interest of the few in control.
Do you know the meaning of defi? Dtokens are 100% its own market in dex
Yes but they do not exist in a vacuum, they will always correlate with the oracle as they have to be minted somewhere, they don't just exist.
The dUSD are not unbacked, they were paid for with the DFI that got burned. Same thing would be the case for the dSTocks
"moon" is an exaggeration. and not literally. sheesh. It's a figure of speech. We all want upward price pressure and deflating supply of DFI. This would be excellent since it's now proving itself to work well in brining the price closer to the oracle.
https://twitter.com/DanielZirkel/status/1488224032889704451?t=T7rRgcfCFFtdnacpQpy6oA&s=19 Well according to DZ they are unbacked, I guess at best indirectly backed could be argued, how ever indirect representation is what got the US dollar where it is, so if we want another broken system I guess it works
Moon was your term... Not sure who you are referring to as we all, as I want organic growth and a system that sticks to the ideas it was built on, not under the table price regulation to instigate your "exaggerated moon"...
yeah but what is backed is backed by what? yet another thing that is speculative in value. Nothing is really backed but by what some group of people are willing to pay for it anyway. That's like same problem Most people have with NFT's or Cryptocurrency in general. Nothing is backed by much of anything. Even real stocks tend to be way over inflated over what a company really produces or does. So there is are trillions in stock market of "unbacked" stocks. I just don't get all worked up about this unbacked talk. It's all a shell game, of trying to make one thing have more seeming value over another so it will be in higher demand. The value is there for dSTocks and if we can do something that both drives up demand for DFI and demand for the dStocks then it's a good thing for the Defichain.
I'll give you that moon was the wrong term. But I was implying stronger demand and with that comes higher prices in the long term
Plus as long as we have super high premiums on dSTocks you are going to have to explain to everyone new "Why" until you're blue in the face with it all. lol Average joes who we built this system for btw, is going to struggle with this "overprice" and shy away from them.
If you have enough skin in the game that it is all a shell game then go ahead and continue trying to pump, demand will come with improvement over time. And noone is worked up over the "unbacked talk". Just the fact that apparently creating a better system is just a game, no need to take it seriously if there is a chance to shill. 600 million dollars say it is not shying people away, but education would be easier if people were trying to capitalize, pump, and reinforce hysteria. I will give you it is a new system, with new fundamentals, but that doesn't mean you have to capitalize on the under education, or try to implement the price regulation of the old broken system... Just a thought, look to the future, not just of yourself but everyone involved
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