Rising Coin UFO

Hi everyone.

I am the founder of Rising Coin project. We are quite close to setting a launch date and we want to cooperate with BlockZero community via Flashstake by making a UFO.

To explain Rising Coin in a TLDR way: By introducing a continuous upward pushing game theory, RC targets to decorrelate from Bitcoin’s 4-year boom-bust cycles which effect the whole crypto industry in a negative way. RC has a production cost similar to a commodity, but the production cost is placed on the top of the market rather than the bottom of it and it is controlled by the community through a smart contract we name “Adjuster”. Production cost is not stable, it increases 1% per day which equals 37x per year and about 1400x per 2 years. This setup introduces a controlled but ever-continuous price push to the upside while it removes unwanted price bubbles which tend to burst and cause long term bear markets. If we succeed, we might introduce the world to a new asset type.

Rising Coin’s distribution will be as unusual as its game theory. It is not possible to mint a few hundred million coins and distribute them like most defi projects. RC stock has to start with zero coins and can increase only if there is demand in the market. As a result, we will have a highly fair distribution.

For those of you who would like to read more, please visit our website and take a look at our white paper.

As an organization we are composed of only developers. A cooperation with BlockZero might cover our obvious shortcomings on marketing and community building and push us forward.

Coming back to UFO, Flashstake has its own liquidity pool which causes a complexity related to RC’s operation. As RC price is being controlled on the upper side, an arbitrage mechanism is needed so that price of RC doesn’t go above its daily production cost on Flashstake pool as well. This means that we will need to develop a smart contract which will run between Uniswap and Flashstake. Before committing our limited resources to this task, I wanted to hear the opinion of BlockZero community.

How does Rising Coin project sound to you?
In your opinion is it worth investing into?
Would you stake your FLASH tokens to support Rising Coin?
What parts of RC could be improved?

Thanks in advance for your comments and insights.

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Hey Akyut, thanks for reaching out. I think maybe a more direct approach (via Telegram) would help out. :slight_smile:

Yes, I talked to Jorn on Telegram. This topic is more to hear valuable comments of the community. :+1:

Cheers, good to hear. Im reading about the project right now. How would you explain the project to a 5 year old? :slight_smile:

If I have to explain it in the shortest possible way:

Rising Coin is a synthetic asset which has a continuous upward push on its price.

I tried to explain it on the new forum, ended up writing a full page on this link.

I clearly can use help from the community to deliver the message much simpler. :grinning:

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Interesting. However, from AMPL to FEI to this project, everybody seems obsessed only with the supply side of the equation. These things alone cannot address the demand side. In spite of everything if there is no demand for GOLD or BTC they will go to zero. And demand is extremely difficult to pin down and model. Thus, I am not sure of such ideas though they all sound interesting and fascinating.

Yes, you are right. Creating a simple automated system for demand is very difficult as it will need funds. There is always a risk of selling low and buying high and lowering your funds as you can never know future price action.

In RC we plan to use the income for marketing to create demand in an indirect way.

I prepared a pitch deck, I hope it clarifies Rising Coin project better. Any suggestions, please let me know.

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I might be missing something. Why bother about IL at all if we are confident of $AQUA itself doing well and have trust in our projects? What purpose does it serve? Would it not be better to focus on the core and maybe add more LP rewards perhaps than to focus on IL? Sorry, if I missed something here…

How do you manage the situation that the price pops, say by 10%, but the production cost increases only by 1%, thereby pushing the production cost underneath the curve? Will you just view it as good for a “rising” coin and ignore it?

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You might still get pops well above the production cost curve and bust below the production cost curve, as the cost curve is a fixed increment while the price is much more volatile? Thanks!

Are you increasing the price above the current market price by 1% or from the previous production cost? If the earlier what is the time period which you take into consideration for the averaging of the price if you average it at all, the same one day? Thanks!

I am not sure whether the first part of your question is about RC or AQUA, so I will skip it.

How do you manage the situation that the price pops, say by 10%, but the production cost increases only by 1%, thereby pushing the production cost underneath the curve? Will you just view it as good for a “rising” coin and ignore it?

The whole purpose is to not let the price go above production cost. We have a smart contract named Adjuster which anyone can call and get a reward. Adjuster is callable only when price surpasses production cost. It calculates exact amount of coins needed to be sold to bring the price back to production cost, mints and sells them. This way a price pop is pushed down.

The idea is to limit the upside of the coin price under control while moving the limit higher day by day. If everything goes as planned, the production cost will go up in a controlled way and pull the market price to itself. No price popping means no long term boom-bust cycles. No going up in hockey stick patterns and no 2.5 year bear markets where everything loses %90+ of their value.

If we were doing this implementation on a CEX with an order book, we would create an automated system which would sell a very high amount of coins at production cost. If this sell wall would be hit due to high demand, new coins would be minted and added to the wall. This automation would increase the sell price %1 every day.

On a DEX there is no such luxury. (Well, looks like with Uniswap v3 we might have very tight range orders to have a system somewhat resembling this but that is another lengthy discussion.) On a DEX we can not put a sell wall, so we let the price go above production cost, and trust that someone from the community will trigger Adjuster to bring the price back to production cost. We reward the person (or bot) who calls the Adjuster proportional to the adjustment he/she/it makes to make it attractive to call it.

We increase the price %1 above the previous production cost. Due to market conditions, price could be going down for many days. We need the production cost to stay high above and keep increasing, so that it will keep its anchoring effect which will pull the price back to itself.

This methodology got exploited in the FEI protocol and they had to stop the rewards! A bot can itself and will bid up the price and then call the adjuster and benefit by selling at the top, repeatedly while others get burnt. Finally everybody will leave the system if they get repeatedly thus burnt. It happened and panicked people at FEI. Then they had to stop the rewards and abate the sell pressure by refunding the panicked sellers!

Adjuster should be autonomous or something like that.

Preventing a stable coin from gaining too much value is quite easy. The large problem with a stable coin is how to prevent it from losing value. FEI is a test of a punishment algorithm using a bonding curve. It sometimes fails and developers think about how to fix it. Good learning for everyone in my humble opinion.

With RC, we are NOT trying to keep the market price at some peg. We use indirect game theory based on stock-to-flow which will pull the price to itself, but the market price is free to fluctuate between zero and production cost.

With all the lessons learned from stable currencies, may be in the future I might think about implementing a stable increasing crypto that also has a peg, quite intriguing subject. :smiley:

RCvsBTCinBoxingRing

I wrote a new article to compare Rising Coin and Bitcoin’s game theories, explaining our motivation behind Rising Coin.

Hi guys. I just posted an article about Rising Coin roadmap updates.

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Hi guys. Rising Coin’s security audit is completed, one more milestone is done.

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Hi Guys. These past days we have been in a silent phase as we are in discussion with launchpads. We used this time to compile a list of our future plans and roadmap candidates. Please check them out here:

https://medium.com/risingcoin/rising-coin-horizons-future-vision-roadmap-candidates-9ea7e304e8ac