As the team behind Morph.Finance can attest, developing a stable coin algorithm project can be as frustrating and exciting as investing in it.
Despite the decline in algorithmic assets since mid-December, the market continues to attract brave investors and developers looking to position themselves at the forefront of the new economic sector – although it remains open to the question of when such projects will stabilize.
Algorithmic assets, primarily formed as the discontinued Basis 2018 project, are designed to automatically adjust the total supply of traded tokens based on predefined conditions such as time or price. While it appears designed to pierce a stick like the US dollar, containing and limiting volatility turns out to be a remarkable challenge.
So far, these assets have remained somewhat marginalized by Decentralized Finance (DeFi), with the market value of the first three projects – Empty Set Dollar, Frax and Dynamic Set Dollar – according to Coingecko only half a billion. However, merchants continue to line up to promote the casino, and new products are constantly being developed, such as the upcoming DIGG BadgerDAO, a synthetic asset designed to track Bitcoin’s price. It is still a new, interesting and little explored area.
A more stable stable currency
In an interview with Cointelegraph, the anonymous developers Morph.Finance – formerly Dynamic.Supply – told their story of trying to build a sustainable project in space, a story with the same ups and downs as in the algorithm’s stable currency scheme.
The team said, “Dynamic.Supply is a simple key junction with modified variants, launched in early January.” “We tried to limit the buildup of whales / robots by limiting the maximum number of tokens on the TX within the first hour of launch, but to no avail.”
The team explained that deep-sea whale merchants were stuck in tokens shortly after launch and continued to play with the options of returning the base in their favor.
“There were no obstructions in the conference room at first, opening the way for snipers as users bought large quantities of DSTR and entered it shortly before the end of an era, and collected the rewards, then dumped from the market before replicating a few hours later.”
The manipulation discouraged early community members and even some developers. Others, however, remain unexplored.
New opportunities and new challenges
As is so often the case in startup stories, obstacles led to creativity. In Morph’s case, the ingenuity came in the form of a Zapper contract, which allowed algorithmically stable liquidity providers to quickly switch between their other project pools.
In the short term, this liquidity has increased, but in the long term, it could also allow Morph to “implement a market-wide LP system that will benefit all farms” – an innovation that can make a difference.
But even the new ramps were not enough to install the handle.
The team said, “Liquidity has improved dramatically, but our tokens have worked against us.” “The DST and DSTR bouts were very fast, leaving us no time to implement new arbitrage mechanisms.”
To combat the overly aggressive token issuance, the team distributed new contracts, tagged them, and asked the community to hand over their tokens – a process that resulted in significant control over gas spending on social media, as well as major concerns that the team might do so. . Plan your rye carefully.
Twitter trader @ CryptoSpider1 was among those holding a stake as a result of the new contracts, and said in a statement to Cointelegraph that rye risks are part of being at the new frontier of space.
“High risk = high reward,” he said, “and the developer has shown that he / she is not interested in harvesting rye, but in creating something interesting that challenges the current model.”
Today at 8:00 PM ET, just weeks after launching under the name Dynamic.Supply, the project has opened liquidity pools, completing the incremental transformation – converting DST and DSTR tokens to Morph Coin (MORC) and Morph Tracker (MORT) also as name. New, website, and release rate.
The Zapper feature – the first thing Morph hopes will be a series of contributions to the space – has also been carried over from the old brand.
Lots of combinations, modifications, and innovations, all from a handful of developers, are designed to extend the range of algorithmic assets.
The question remains open whether Morph’s changes will ensure the stability of its assets, just as similar concerns arise around most, if not all, computational action projects.