@mhps is correct. The issue here is that there is a black market cny price that differs from the yahoo price feed. What I will be doing with this pool I hope will be generally applicable and will usher in new waves of attempts at understanding what it means to offer a peg. I have yet to have a really good dialogue about the concept of the ‘shift’ parameter and I think the only way I’ll get that conversation is by implementing it and just seeing what happens.
We have a chance to make a lot of money here. Block consensus if you like, but I think enough shareholders understand that something here both has potential to be big news and is currently broken in this incarnation.
I don’t really care about what cmc thinks nbt are worth. What I care about is that people can buy and sell nbt at fair prices. If cny is really valued 3% lower than the price feed says it is, we should be selling our nbt for that much more cny. However, that’s the obvious part. The beauty is that we need to pick up the buy side as well.
Offset>shift. With a 1% SAF I can do a 0.65% shift for a 1.5% tolerance.
The other option for automating shift is to use more price feeds to dynamically find the black market feed and simply peg to that instead of yahoo. We would need to put the server on that feed, whereas the other option keeps the server feed the same and just lets the custodians shift around it within an envelope.
