"No Sign Of The Petro Here": Mystery And Confusion Besets Venezuela's Crypto "Revolution"
Coins are easy, liquidity is hard.
My plan here was the oil discount coin. Oil producers, ports, and transporters buy and sell it, it offers up to 15% discount, and has a futures bet. The oil discount coin allows unanticipated inventory volatility to be spread over a series of trades, traders have an insurance option.
Popular because the discount is within range of typical margins. All parties can make endogenous adjustments, locally, and ad hoc to cover internal planning errors.
The key to successful liquidity networks is the automated S&L, a prequalified party buys the discount coin and drops it into deposit. Transaction costs low, S to L matching error bounded makes for a low risk path to fully functional.
Get a few major bankers on the trusted miner list, insuring prequals in the oil reserve business. The party contracts, up to a small ratio, to accept the coin. The pricing is set by excursions from the norm, tankers who get caught empty somewhere, can accept the coin from local producers.
The coin really represents contractual obligations on the part of prequalified traders. Ledger technology, in a trusted miner situation, is low cost. The result is this very liquid inventory insurance program, likely shave off 5-10% of inventory volatility.
My plan here was the oil discount coin. Oil producers, ports, and transporters buy and sell it, it offers up to 15% discount, and has a futures bet. The oil discount coin allows unanticipated inventory volatility to be spread over a series of trades, traders have an insurance option.
Popular because the discount is within range of typical margins. All parties can make endogenous adjustments, locally, and ad hoc to cover internal planning errors.
The key to successful liquidity networks is the automated S&L, a prequalified party buys the discount coin and drops it into deposit. Transaction costs low, S to L matching error bounded makes for a low risk path to fully functional.
Get a few major bankers on the trusted miner list, insuring prequals in the oil reserve business. The party contracts, up to a small ratio, to accept the coin. The pricing is set by excursions from the norm, tankers who get caught empty somewhere, can accept the coin from local producers.
The coin really represents contractual obligations on the part of prequalified traders. Ledger technology, in a trusted miner situation, is low cost. The result is this very liquid inventory insurance program, likely shave off 5-10% of inventory volatility.
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