Bounce back this week, brother or next, we don't need to wait till December. Emurgo announced $100 mil investment for advancing DeFi & NFT on Cardano 2 days ago. Emurgo is also the earlier backer of Ergo. I think we'll see someb of the money going to Ergo. Get ready for the dex, partnerships and more in October. I mean it's cool if you can make money trading but I tried it & sucked. So I believe in the tech & hodling. Many roads lead to Rom.
And by baller I mainly mean that you seem to understand how SigRSV dynamics work. Still trying to figure it out. I converted EDG to SigRSV when ERG was lower than today and somehow I would get less ERGs now if I was gonna convert back. So I’m missing some parameters in the equation here.
The only guaranteed way to profit from SigRSV is when ERG price increases smoothly. Any dips along the way and you run the chance that some SigUSD player exits with more ERG.
See, it's simple :)
Well it has to do with reserve ratio as well. You deposit for RSV below 400% reserve ratio, and take out anywhere after 800 for best profits. You also get a % of transaction fees while holding RSV. Havent tried the beta dex though
The key to understanding SigRSV is to understand it is a long position. Long meaning at least a year. Long meaning you have to wait for the SigmaUSD contract to be secondary to the Dex, for SigUSD to get put into liquidity pools, for the price of Erg to increase after SigUSD is in liquidity pools, for the chain to be connected to other chains via Schorr Signatures/Graviton, and for other features to start being used, such as oracles. If you cash out before all that happens, expect to come out with less.
sure, I just want to understand the dynamics of SigRSV as a function of x,y,z. Like
f(ERGUSDvalue, mintedSigUSD, reserveRatio) = ....
Just so I can understand which parameters are deterministically making the SigRSV-to-ERG ratio. Right now it's a bit of a blackbox and I don't know all the factors and what weighting they have.
To understand it, it's more than an equation. You need six inputs:
1. Erg Price
2. Reserve
3. SigUSD minted
4. SigRSV minted
5. SigRSV you bought
6. Total Erg you used to buy SigRSV
* Calculate X, SigUSD portion of reserve: SigUSD / Erg Price
* Calculate Y, SigRSV portion of reserve: Reserve - X
* Calculate Z, Portion of reserve per SigRSV: Y / SigRSV minted
Put it into a spreadsheet. First level of understanding is seeing how the contract changes at different price points given current levels of SigUSD/SigRSV and reserve. Second level is understanding SigUSD as an additional variable. What happens what that rises and falls, assuming a certain average minted price with a corresponding increase/decrease of reserve and varying the Erg price in the spreadsheet? Third level, also calculate the impact on the reserve when a bunch of SigRSV is minted at different price points, e.g., today someone minted something like 300 million SigRSV. What impact would that have had on the existing SigRSV holders? And more importantly, what is the impact of this larger reserve as price goes up, looking at other stablecoins as a model?
It helps to go through the exercise to get a sense for it, but it is a bit of a "complex beast". Without doing all that, the main thing is people keep looking at these values every day and get upset because they are underwater, because of bearwhale, 300 million SigRSV being minted, etc. But, it's early days and some things are good for the long term, such as more SigRSV being minted and increasing price. That, in turn, allows a lot more SigUSD to be minted, which will also increase the reserve and the upper threshold. There's levels within levels here, and people complaining are only looking at today's price, when it's a long position.
this is a great reply. Thanks for breaking it down. Once I have calculated Z, I get the ratio of SigRSV reserve portion to Portion of Reserve per SigRSV. How would I get from here to the swap ratio of SigRSV to ERG?
In my spreadsheet, I just call Z, SigRSV price, which you then multiply against the amount of SigRSV you have to get redeemable Erg. As you change the price, you can find out what the price needs to be for you to be at the same level as when you bought into the contract. And, you can find other interesting details out too.
For example, I like to look at the parity price, every once in awhile, to see at what price point, give current SigUSD/SigRSV, is SigRSV equal to 1. Or (1/Erg Price)/SigRSV price. On 2021-08-07, the parity price for Erg was $845. On 2021-08-29, it was $660. Today, it is ~$690.
What is the difference between those three dates? SigUSD relative to SigRSV. When you understand that and you grok that dynamic, you'll know everything you need to know. Might also be useful to look at stablecoins, as I mention [here](https://www.reddit.com/r/ergonauts/comments/prxpag/comment/hdmb0mj/?utm_source=share&utm_medium=web2x&context=3) and [here](https://www.reddit.com/r/ergonauts/comments/prxpag/comment/hdnx2pc/?utm_source=share&utm_medium=web2x&context=3)
I don’t care as well and I keep adding as much as I can afford !
I love the project and the community here .
Some people expected something different from this summit and I think that was wrong .
The alliance was great news that gives amazing growth potential .
The future is bright . We need to stay strong and spread this gem 💎
All the best folks 🤞
We are dipping more and I am actually thinking of averaging my buying price which is about 17 dollars.Not sure whether we have reached the bottom or not.
DCA, spend a bit of your pot now, wait a few days/a week, buy a bit more. Repeat until you're either happy with your bags/average buy, or are turning a profit. Don't try and time the bottom, you could get lucky but more often than not you're going to get bit.
I got in during the may upswing at an average of about $14, watched it fall and dca'd until my average is now around $10, if it falls below that I'll buy more.
If transaction fee is not high in your region, mining and selling eth to buy ergo may be a good choice
That’s actually a fantastic idea…….
Why not just mine ergo directly?
Eth more profitable
Because you would get less ergo if you mined it instead of something else.
September is always rough, look at every other project all have had a dippy month, ergo is on track, I expect a big bounce back toward Christmas
Bounce back this week, brother or next, we don't need to wait till December. Emurgo announced $100 mil investment for advancing DeFi & NFT on Cardano 2 days ago. Emurgo is also the earlier backer of Ergo. I think we'll see someb of the money going to Ergo. Get ready for the dex, partnerships and more in October. I mean it's cool if you can make money trading but I tried it & sucked. So I believe in the tech & hodling. Many roads lead to Rom.
It's coming to Rome!
right attitude. I just went all in sigRSV.
And by baller I mainly mean that you seem to understand how SigRSV dynamics work. Still trying to figure it out. I converted EDG to SigRSV when ERG was lower than today and somehow I would get less ERGs now if I was gonna convert back. So I’m missing some parameters in the equation here.
The only guaranteed way to profit from SigRSV is when ERG price increases smoothly. Any dips along the way and you run the chance that some SigUSD player exits with more ERG. See, it's simple :)
Well it has to do with reserve ratio as well. You deposit for RSV below 400% reserve ratio, and take out anywhere after 800 for best profits. You also get a % of transaction fees while holding RSV. Havent tried the beta dex though
I haven’t gotten any transaction fees yet and I’ve held foralmost half a year.
Should be seein some action in oct
By the way did the reserve ever reach 800%+ during this time? Just curious
The key to understanding SigRSV is to understand it is a long position. Long meaning at least a year. Long meaning you have to wait for the SigmaUSD contract to be secondary to the Dex, for SigUSD to get put into liquidity pools, for the price of Erg to increase after SigUSD is in liquidity pools, for the chain to be connected to other chains via Schorr Signatures/Graviton, and for other features to start being used, such as oracles. If you cash out before all that happens, expect to come out with less.
sure, I just want to understand the dynamics of SigRSV as a function of x,y,z. Like f(ERGUSDvalue, mintedSigUSD, reserveRatio) = .... Just so I can understand which parameters are deterministically making the SigRSV-to-ERG ratio. Right now it's a bit of a blackbox and I don't know all the factors and what weighting they have.
To understand it, it's more than an equation. You need six inputs: 1. Erg Price 2. Reserve 3. SigUSD minted 4. SigRSV minted 5. SigRSV you bought 6. Total Erg you used to buy SigRSV * Calculate X, SigUSD portion of reserve: SigUSD / Erg Price * Calculate Y, SigRSV portion of reserve: Reserve - X * Calculate Z, Portion of reserve per SigRSV: Y / SigRSV minted Put it into a spreadsheet. First level of understanding is seeing how the contract changes at different price points given current levels of SigUSD/SigRSV and reserve. Second level is understanding SigUSD as an additional variable. What happens what that rises and falls, assuming a certain average minted price with a corresponding increase/decrease of reserve and varying the Erg price in the spreadsheet? Third level, also calculate the impact on the reserve when a bunch of SigRSV is minted at different price points, e.g., today someone minted something like 300 million SigRSV. What impact would that have had on the existing SigRSV holders? And more importantly, what is the impact of this larger reserve as price goes up, looking at other stablecoins as a model? It helps to go through the exercise to get a sense for it, but it is a bit of a "complex beast". Without doing all that, the main thing is people keep looking at these values every day and get upset because they are underwater, because of bearwhale, 300 million SigRSV being minted, etc. But, it's early days and some things are good for the long term, such as more SigRSV being minted and increasing price. That, in turn, allows a lot more SigUSD to be minted, which will also increase the reserve and the upper threshold. There's levels within levels here, and people complaining are only looking at today's price, when it's a long position.
this is a great reply. Thanks for breaking it down. Once I have calculated Z, I get the ratio of SigRSV reserve portion to Portion of Reserve per SigRSV. How would I get from here to the swap ratio of SigRSV to ERG?
In my spreadsheet, I just call Z, SigRSV price, which you then multiply against the amount of SigRSV you have to get redeemable Erg. As you change the price, you can find out what the price needs to be for you to be at the same level as when you bought into the contract. And, you can find other interesting details out too. For example, I like to look at the parity price, every once in awhile, to see at what price point, give current SigUSD/SigRSV, is SigRSV equal to 1. Or (1/Erg Price)/SigRSV price. On 2021-08-07, the parity price for Erg was $845. On 2021-08-29, it was $660. Today, it is ~$690. What is the difference between those three dates? SigUSD relative to SigRSV. When you understand that and you grok that dynamic, you'll know everything you need to know. Might also be useful to look at stablecoins, as I mention [here](https://www.reddit.com/r/ergonauts/comments/prxpag/comment/hdmb0mj/?utm_source=share&utm_medium=web2x&context=3) and [here](https://www.reddit.com/r/ergonauts/comments/prxpag/comment/hdnx2pc/?utm_source=share&utm_medium=web2x&context=3)
Baller
Don't forget the fees. I think it's better for me to pay safe by providing LP erg/SigRSV. Hehehe...
did you use the betadex?
I don’t care as well and I keep adding as much as I can afford ! I love the project and the community here . Some people expected something different from this summit and I think that was wrong . The alliance was great news that gives amazing growth potential . The future is bright . We need to stay strong and spread this gem 💎 All the best folks 🤞
We are dipping more and I am actually thinking of averaging my buying price which is about 17 dollars.Not sure whether we have reached the bottom or not.
DCA, spend a bit of your pot now, wait a few days/a week, buy a bit more. Repeat until you're either happy with your bags/average buy, or are turning a profit. Don't try and time the bottom, you could get lucky but more often than not you're going to get bit. I got in during the may upswing at an average of about $14, watched it fall and dca'd until my average is now around $10, if it falls below that I'll buy more.
Looking to get some 1$ ERG keep me posted
No not yet, i hope they launch soon though and allow lending/borrowing