Thread by @sovereignorigin

Dear #SuperHodl plebs: important update going forward on the algorithm experiment I'd like to share 🧵

Context: $DLLR is now live! It gives Zero users an option to buy #bitcoin directly, like we did as part of the original #SuperHodl algorithm. ⤵️

As introduced earlier, #StableHodl is a new version that leverages the stability pool as a place to hold our reserves (as we have been doing with #SuperHodl, too, since the @babelfishmoney did not allow further ZUSD in their pool).⤵️

Through $DLLR and the stability pool, we can start to do #StableHodl and buy #bitcoin again like the algorithm intends, while actively gaining #bitcoin on the downside as well (at very low prices). ⤵️

My proposal is thus to 🛑stop🛑 the current #SuperHodl experiment (we ran for ~230 days 🪦).

It, in any case, is already an amalgam of several policy changes due to changes to our habitat.

So when do we get started on a #StableHodl experiment? ⤵️

While I am confident on the baseline algorithm, it does currently not account for redemption risk: it has a very high return at a relatively risky CR.

Not a problem if managed daily and with attentive users (liquidation perspective), but unsafe against redemption. ⤵️

In order for #StableHodl to be a user-friendly algorithm with good UX, I want to ensure the loan CR is always high with respect to the total loan set CR ("Total CR in Zero"), so that LoCs following #StableHodl do not get redeemed against (easily) ⤵️

I am currently generating backtesting data i.e. "fake loans" to emulate a Zero environment to test against, and want to use that to update #StableHodl.
Then, that can be used to track the system's Total CR value in an adaptive fashion and adjust. ⤵️

This analysis and implementation, however will still take time, so I wish you bull with me while I'm taking care of the dishes, so to speak.

And then, serve you #StableHodl on a clean plate, with cutlery.

Let me know your thoughts.

#HODL on!

Friendly tags for RTs and visibility on this thread:

@SovrynBTC @SovrynDollar @EdanYago @onedigitmoney

And tagging the plebs 🧡
@Keinor @cabincryptoguy @Sacro84431472 @lessthan3aire @jnunez @UpsideDown_Head @SyninCrypto @bullett023 🦾

(Final notes ⤵️)

If you currently still have a loan open that was tracking #SuperHodl, let me know if you need some support to bring it to a desired state (closed, unmanaged, ...) just send me a DM and I will happily consult with you to resolve any doubt.

THX FOR YOUR SUPPORT!