HyperShield is a set of practices more than a technology. It is a combination of techniques to help support the HyperStake market, so it is much more economy than technology.
The techniques being considered are:
- (phase IV) Pledging to keep part of your sales to create a buy wall. Participants should be able to withraw their part at anytime, since others would hopefully add their own BTC, leading to a dynamic equilibrium or a slowly-growing wall.
- (phase 0) Sending part of the stake (via an opt-out multisend donation) to a sell wall.
- (phase II) A market bot to "smoothen" the market
- (phase 0) A bounty for market makers. HyperStake brings the money, market makers bring their skill and would pledge to set aside a part of the gains for increasing the BTC part of the bounty
- (phase 0) A multipool paying in HYP, http://thepool.pw/HYP/
The latest strategy being considered is "Preemptive action, progressive retaliation"
- Phase 0 - business as usual (Preemptive Action I)
Multipool plus sell wall, plus market makers, plus OTC (OTC reduces volatility - ##hyperstake-otc and the trading thread). The multipool generates buy pressure, a community-funded sell wall acts as a deterrent for a pump and a community-funded bounty borrows money to market makers to maintain volume (they keep the benefits). The sell wall is upped when necessary (exactly how and when is yet do be decided). The sell wall being eaten is the signal to move to Phase I.
- Phase I - releasing the pressure (Preemptive Action II)
Whales use S4C/HyperSend to kill the pump before it explodes (remember; "HyperShield is a set of practices more than a technology"). For instance: if the price is below 5K, they don't sell. If the price is above 5K, they send 25% of their stake to the exchange for selling (StakeHunter pledge). If the price rises too quickly ("too quickly" being decided by the community), they raise the percentage of staking to be sold. 33%, 50%, 75%, 100%. The will generate an increasingly high sell pressure that will neutralizes the pump. Why just the whales? First, everyone can do it; second, "noblesse oblige" (with great powers come great responsabilities - read Rich man's problems).
- Phase II - market bot (Progressive Retaliation I)
If this doesn't suffice and the pump does explode into a dump, then the first retaliation is to activate a market bot for helping in a "soft landing".
- Phase III - nitropool (Progressive Retaliation II)
If it is not enough, then we "go nitro". This means using some of BTC accumulated by the HyperShield/BTC stabilisation fund (donation, eaten sell walls...) to buy hashing power at nicehash. The multipool mines like crazy(loaf), much like a car with nitromethane. And I like the imagery more than "steroids" :)
- Phase IV - buy wall (Progressive Retaliation III)
Finally, as a last resort, we erect a buy wall with the rest of BTC from HyperShield (it is important that a buy wall is not constantly erected). Worst-case scenario (the buy wall gets eaten), we have more HYP to sell later at higher price.
Note that stabilization fund is split into few parts (source). An emergency buffer, in hard BTC, and a replenishment buffer (we should not rely only on donations), in a set of PoS altcoins with a relatively steady exchange rate and volume. To prevent the price tanking each asset should be bought on the dips (the portfolio will be formed gradually). In this case the replenishment buffer can be urgently sold without a loss if needed. The replenishment buffer require someone to take care of it, since it is particulartly time consuming.
This strategy is inspired by the defense in depth strategy in IT security.
What is needed presently Edit
- Multipool (already working). Phase 0.
- Multisend (presstab is on it). Required for building up the sell wall. Phase 0.
- Bounty (both in BTC/XMR/XUSD and in HYP) for the market maker. Should start as a donation since it requires BTC. Phase 0.
- HyperSend/S4C (already working). This requires some concertation among large holders in particular. I will contact them. Phase I.
- Market bot (already working). Phase II.
- Nicehash account. Should start as a donation since it requires BTC. Phase III.
- Buy wall. Pledging to give a part of you sales for the buy wall. Phase III.
- "HyperShield/BTC" donation address for market making, nitropool and buy wall. Address is 1CwkZdajxxneGaohM2TQqzhaA6kDuRVz3m controlled by David Latapie.
- Someone willing to handle the replenishment buffer part of the "HyperShield/BTC".
- "HyperShield/HYP" donation address for sell wall. Address is pRgFiB3HH1D4oPRkW9eSZYr663DMFrs3Mg, controlled, controlled by David Latapie.
Further reading Edit
- Announcement on bitcointalk