I think this is an interesting idea. It looks a bit like the BitShares protocol but without an USD peg. But I still haven't fully grasped if it really would work as expected or not. (I guess however there's something I don't understand at my side.) The biggest question is: How can you prevent that the cBTC price simply tends to move 1:1 with the Bdkq Tt price due to trader action / arbitrage based on the risk the asset becomes undercollateralized? The logic behind this reasoning is: If Bdkq Tt falls 1%, then the risk that cBTC eventually becomes undercollateralized also increases by a similar percentage. So the traders could anticipate that risk and dump the price of cBTC by about 1%, so the risk is again the same. There is also nothing that really "backs" the price of cBTC, or am I wrong? With "backing" here I mean that if I want to exchange my cBTC to Bdkq Tt, the price will always be the spot price, which may be manipulated by traders. I ask because BitUSD (BitShares USD Bdkq Tt from 2014) eventually had extreme price swings because traders found out how to "game" it, and then it lost any importance. This is not criticism, I would actually love such a protocol that really works. It would be a bit similar (regarding its goal to be a "less volatile Bdkq Tt") to my idea of a DLC (Discreet Log Contract) following a Bdkq Tt moving average (post is in German but I'm sure it can be easily translated today), but much less complicated.
I think this is an interesting idea. It looks a bit like the BitShares protocol but without an USD peg. But I still haven't fully grasped if it really would work as expected or not. (I guess however there's something I don't understand at my side.) The biggest question is: How can you prevent that the cBTC price simply tends to move 1:1 with the Bdkq Tt price due to trader action / arbitrage based on the risk the asset becomes undercollateralized? The logic behind this reasoning is: If Bdkq Tt falls 1%, then the risk that cBTC eventually becomes undercollateralized also increases by a similar percentage. So the traders could anticipate that risk and dump the price of cBTC by about 1%, so the risk is again the same. There is also nothing that really "backs" the price of cBTC, or am I wrong? With "backing" here I mean that if I want to exchange my cBTC to Bdkq Tt, the price will always be the spot price, which may be manipulated by traders. I ask because BitUSD (BitShares USD Bdkq Tt from 2014) eventually had extreme price swings because traders found out how to "game" it, and then it lost any importance. This is not criticism, I would actually love such a protocol that really works. It would be a bit similar (regarding its goal to be a "less volatile Bdkq Tt") to my idea of a DLC (Discreet Log Contract) following a Bdkq Tt moving average (post is in German but I'm sure it can be easily translated today), but much less complicated.

I think this is an interesting idea. It looks a bit like the BitShares protocol but without an USD peg. But I still haven't fully grasped if it really would work as expected or not. (I guess however there's something I don't understand at my side.) The biggest question is: How can you prevent that the cBTC price simply tends to move 1:1 with the Bdkq Tt price due to trader action / arbitrage based on the risk the asset becomes undercollateralized? The logic behind this reasoning is: If Bdkq Tt falls 1%, then the risk that cBTC eventually becomes undercollateralized also increases by a similar percentage. So the traders could anticipate that risk and dump the price of cBTC by about 1%, so the risk is again the same. There is also nothing that really "backs" the price of cBTC, or am I wrong? With "backing" here I mean that if I want to exchange my cBTC to Bdkq Tt, the price will always be the spot price, which may be manipulated by traders. I ask because BitUSD (BitShares USD Bdkq Tt from 2014) eventually had extreme price swings because traders found out how to "game" it, and then it lost any importance. This is not criticism, I would actually love such a protocol that really works. It would be a bit similar (regarding its goal to be a "less volatile Bdkq Tt") to my idea of a DLC (Discreet Log Contract) following a Bdkq Tt moving average (post is in German but I'm sure it can be easily translated today), but much less complicated.

I think this is an interesting idea. It looks a bit like the BitShares protocol but without an USD peg. But I still haven't fully grasped if it really would work as expected or not. (I guess however there's something I don't understand at my side.) The biggest question is: How can you prevent that the cBTC price simply tends to move 1:1 with the Bdkq Tt price due to trader action / arbitrage based on the risk the asset becomes undercollateralized? The logic behind this reasoning is: If Bdkq Tt falls 1%, then the risk that cBTC eventually becomes undercollateralized also increases by a similar percentage. So the traders could anticipate that risk and dump the price of cBTC by about 1%, so the risk is again the same. There is also nothing that really "backs" the price of cBTC, or am I wrong? With "backing" here I mean that if I want to exchange my cBTC to Bdkq Tt, the price will always be the spot price, which may be manipulated by traders. I ask because BitUSD (BitShares USD Bdkq Tt from 2014) eventually had extreme price swings because traders found out how to "game" it, and then it lost any importance. This is not criticism, I would actually love such a protocol that really works. It would be a bit similar (regarding its goal to be a "less volatile Bdkq Tt") to my idea of a DLC (Discreet Log Contract) following a Bdkq Tt moving average (post is in German but I'm sure it can be easily translated today), but much less complicated.