Why should I hold RiskCoin?
You should hold RiskCoin if you want a leveraged exposure to ETH for very little cost or maintenance. If you consider yourself a “hodler” then you should be interested in RiskCoin as a “superhodl” strategy.
Why should I hold StatiCoin?
You should hold StatiCoin if you require an asset with the stability of FIAT, but with the usage benefits of an ERC20 token.
Is there ever a demand mismatch?
There is a risk of demand mismatch, especially at the outset. StatiCoins are only minted when there are sufficient RiskCoins in circulation. We are currently exploring new ways of floating the RiskCoin asset to enable widely available StatiCoins.
The ability to return coins directly to our contracts only ensures that StatiCoins are worth “at least” the underlying fiat value. If the price difference is too large then people will create some RiskCoin and immediately create StatiCoin to sell on the Exchange.
How do you avoid black swan events?
We are using the 24 hour weighted average price to avoid the risk of flash crashes/whale sales, but a prolonged fall in ETH price (e.g. DAO v2.0) followed by a large proportion of staticoin holders withdrawing will cause a bankruptcy event in the contract. The last staticoin holders to redeem their coins will lose out (rather like a bank run).
The initial reserve ratio allows for a 75% fall, but this will vary and the black swan always exists. Any ETH backed (or crypto backed) pegging system fails if the collateral also falls. It’s precisely this effect that we are using to reward risk holders if prices increase. If we get rid of ETH as our collateral or increase the reserve ratio, we lose our incentive to hold riskcoin. Our current solution is to warn explicitly about the black swan risk.
Why is the oracle price so high?
The call to oraclize.it is cheap, but the callback transaction also must be paid for, which they charge a flat rate (200,000 wei?).
If the RiskCoin price value drops to 0, can I create a large amount of RiskCoin for practically nothing and then 3x 6x investment when ETH rises?
If RiskCoin is close to, but still above 0, then yes. The low prices for RiskCoin hopefully will encourage recapitalization of the contract.
If RiskCoin price is at or below 0 then the contract will not issue any new coins, although you’ll still be able to trade them on exchanges or wait for the price to rebound.
Do I have to use the dapp user interface
No. Creating coins is easy, just send ETH to usd.staticoin.eth or usd.riskcoin.eth (you can swap usd for eur, gbp, cad or jpy) using metamask or similar and you will receive coins in 24 hours.
The easiest way to redeem coins is to use our dApp, or advanced users mayinteract with the functions RetRisk() and RetStatic() on the contract directly. When returning coins, a small amount of ETH is required to pay for the oraclize.it fee, but any excess sent to the contract is immediately returned.
Where is the contract code?
All contracts have been verified on Etherscan so can be viewed there, or at https://github.com/genkifs/staticoin
How can I test the system for minimal cost?
Implementations are available on both Kovan and Rinkby testnets.
Can you give me a numerical example of the RiskCoin price?
For a numerical example, imagine
X = 900 = Exchange rate
R = 3 = Number of RiskCoins
S = 200 = Number of StatiCoins
E = 5 = Amount of ETH
RiskCoin price = Y= (5 * 900 – 200)/3 = 1433
The leverage is too higher rate. Can I control my leverage directly?
Leverage is directly controlled by the amount of RiskCoin purchased. If the current leverage is twice your comfort level, simply purchase half the quantity of RiskCoin you were considering.
What sort of scale is Staticoin expected to reach?
This iteration of Staticoin is deliberately small scale. The oracles and exchanges are currently too easily manipulated for any referenced stablecoin system. We have plans for more sophisticated structures (default insurance, order size limits, custom price tickers, quicker minting times, multiple strike levels) which will allow medium scale (>100M€) but they’re not worth considering until the simple system gains interest.
How does the RiskCoin value depending on the ETH price?
This graph illustrates the Riskcoin price after all the available staticoins have been purchased.
This strike level assumes that all staticoins were purchased at $400.
What are the contract addresses?
USD Minter 0xadb797366e36697dc9742a8c820d3dda931668d2
EUR Minter 0x18e0e11cb7e99c1bfbf5e488d7e82466924d347c
GBP Minter 0xdd5a402ca57abf0257bc90223bfdf68270f5b71e
CAD Minter 0x3c0dc478b0e29f284e8d2424fde705ef5d847f31
JPY Minter 0xdc75eb262b08246ae8a1125e119667fb79540ef3
USD Static 0x1daaf3d62582639c6a7eabb467e2db9b56fafbbd
EUR Static 0x1831887fbabf783910db128e60c41bfa016059d8
GBP Static 0xa9666166d3c7fd15e874801f99e9ad5bfb70c5cf
CAD Static 0x1735fc2b89b80d1ae33c35dd55eae7fa7642f336
JPY Static 0x5f54c1512d036a0dd92744ee0a55ed183dde0484
USD Static 0xd0800859d6f4bc0210b7807e770bc44a9ece7372
EUR Static 0xe5a219d4db92a701e79b6e548803c8ce55138686
GBP Static 0xdfe2bd1d3dcbb97804acf3ee85230e832c4a7b5d
CAD Static 0xf4522eda455814d43b003bc1c38501b04d65cc4a
JPY Static 0x22a3d74c363379189b6cc059d8fbd888e98df5ec
USD Pricer 0xd64ed2c8c24081e540cd7ed2b6297828a57ecd19
EUR Pricer 0x1d671d441c475bacd95b1512396aefa50e55684e
GBP Pricer 0x6987d362fb899f0f0fa67635755d7988d0ef613e
CAD Pricer 0x21509993018a97d19650d803b32800685d51066f
JPY Pricer 0xa6e90a2b867e0c4b344eb73caca4bc56e56be17f
USD Minter 0x2125b719774bd23484bcf8b36140c8d10e176819
EUR Minter 0x92868054745ef39c0ccf588d2f87d583a11856d8
GBP Minter 0x708733e149ff8de4f47de5e9fddbd8305744d70f
CAD Minter 0x8fff60b4b170910131152a6c49311525a3a31d00
JPY Minter 0x1ceec6877e0c8f0f1c3906b15e66dbb094ec85be
USD Static 0x123a980e23f02b680bd7b6b7c6f1c87951fcd4f8
EUR Static 0x2e4b6c768776258bc8b3fbfa2c1279732b99a2fe
GBP Static 0xf801e05012b1a1c8ed89bafe4f16a225adec6d3b
CAD Static 0x3dff516177b6e74d6279d407e211fe795506fef4
JPY Static 0x3a56531eb6cffbe4b3eee2fe4481d0c0cce3a133
USD Static 0xb0d2e1577f8342dd086adf7f364212e261a7892e
EUR Static 0x73c6ed76056f4f6808a73cdf8c9f9d9a0a579951
GBP Static 0x5a5fb07233a47c7da10a6af498eacdc080363e22
CAD Static 0x61d952867f03027acbadb16c9fe30af221e90200
JPY Static 0xbefbfa889940204dc5f5492be2af19dbf1ce8306
USD Static 0x2122de8993b3c5a4036f245225126ff3c9a4037a
EUR Static 0x258b8d7047c042910472fbf324b8f99a48d59ffc
GBP Static 0xe8489761a32d4ba6948050483e4f3da9b3d08ba6
CAD Static 0x84c2da0a8c5828d4b568c55679e48f0c476d8004
JPY Static 0x62705bc696e038c2af449bd394beaaa4ad7a54fd