Foreword: There have been a lot of recent things. There are a few long articles that are not written. There is a Facebook-issued face coin (just the first time this time last year with the face coin team), there is an encryption about the recent and team incubation. The digital version of the number one player "Statoshi's Treasure", as well as a large circle from Fidelity and Vaneck, was collected and the first-hand foreign financial institutions were doing. Algorand is more suitable for this matter. He also wrote an abbreviated version after discussing with a few friends. Every time the public number writes Alexander, he always feels that he should write the public number in the attitude of treating the paper or at least essay. Short content can follow me on Twitter, Planet and Weibo, where updates are more frequent. After painstaking thoughts, I decided to guarantee the amount of updates once a week, otherwise I would like to thank the friends who thank the public number.
Below the main text, enjoy.
- Dry words | Algorand Economic Report
- Research Report | Algorand Auction and Transaction Deduction Analysis
- Interview | That "怼" Algorand's paper says? Come listen to the author
- The first half of the open market financing totaled $2.59 billion behind: Algorand only ranked fifth, STO nobody cares
- Cancel the Dutch auction, the right to withdraw the currency is not fixed, Algorand sit on the real high IQ harvest rumors?
- Raised $60 million in 4 hours, valuation approaching Ethereum, Algorand into the rookie
The fund disk also has the IQ level.
A lot of people have not yet figured out the interesting aspects of Algorand's design.
The funding screen seems to be derogatory in Chinese. The more accurate description should be a financial engineering design, or the English slang is moonmath. Let me talk about it carefully:
1. The most powerful part of algorand is to design the repo mechanism as a put option, anchoring the put option strike price to the price of the open market.
2. And there is a high probability that the option will not be exercised and will result in no open pressure on the open market. Because as long as you drop 10%, no one sells it, and more than 10% fall. Those who participate in the auction will buy it because they can arbitrage at a higher price. Therefore, through the design of a price mechanism, it successfully guides the expectations of both parties involved in the transaction. It is really a very clever game design. For the first time, it can be called cryptoeconomic. The amount of repurchase that ultimately needs to be paid is actually limited, as long as the seller knows that "I can always save 90% in one year." Effective and expected management is the real magic.
3. This plate collapses very slowly and should not collapse as long as it is not repurchased.
4. The question will start after the put option expire one year after the end of the first auction, and the team wants to lock 90% of the financing to ensure the worst 100% repo.
5. This design is conducive to keeping the price of the currency stable and non-fluctuating, because the trader clearly knows the strike price and delivery time of each option, and spontaneously forms the behavior of market making.
6. Participating in the Algorand auction is more suitable for two kinds of people: 1. Presale's relay node (node wheel, cost $0.05 for an Algo, one node for $2 million, forcing a rich man) 2. Old money for volatility sensitive, there is a need for capital preservation . So in the end, it’s a game of big leeks cutting big leeks.
7. The way the node wheel forces to get rich is – participate in the auction, get the same amount of Algo's repurchase rights, then sell the auctioned Algo, and then look at the price one year later to execute the repurchase right or sell on the market. It can also get 15% of the node's revenue in the first year, so you can lock in 48 times of revenue anyway. Beautiful.
8. The risks that Algorand faces in the future are actually greater than the risks of regulation.
1. After the open market transaction, the price of the auction will inevitably be lower than the open market price. What is the significance of the auction? A: This is a smoothing mechanism for price fluctuations, because the auctioned Algo has a repurchase right, but the open market Algo' does not. But once the Algo quota is taken, the repurchase is actually fungable (interchangeable) for both Algo' and Algo. So the price of the auction should not deviate too much from the market price.
2. Is this type of model reproducible? A: There is copyability, but it only applies to – 1) a team with money on hand, because the worst result of the auction is that 90% of the money will be returned to the buyer. So you can't count on the auction money to make long-term working capital. 2) The team that doesn't plan to run. Most of the funds are for the purpose of running, pulling the path for the path, and finally "hacking" the script for the ending, because this Long-acting options are actually the team's assets and liabilities, unlike many teams that rely on repurchasing. 3) In addition to the above two points, you can truly return to the value-based project after one year. . Otherwise, it is not as simple and rude as the old fund mode.
3. Can I participate in the next auction? (Ignore the leek three-in-one question here) A: Do you understand what I wrote above?
See the sauce, see you next week.