Delta DeFi Sentiments | DDS
Last updated
Last updated
DDS - Delta DeFi Sentiments - Tracks inflows and outflows of capital in small cap DeFi sectors as a percentage change from a prior period contrasted to inflows and outflows of large cap assets to determine sentiments. Uses machine learning to gather and decipher sentiments across multiple platforms to add a multiplier to the asset that helps determine accuracy of underlying moves.
Like the underlying market, positive moves correlates to asset appreciation whereas negative underlying market moves results in asset depreciation. However, due to the collection of broader sentiments, if there is a strong negative shift in sentiments over time, if the underlying sectors had multiple periods of appreciation, this negative weighting would curb appreciation. The same is also true of the opposite. Strong positive sentiments and negative changes in pricing periods would curb the depreciation of the asset.
Mints start at 10 USD worth of ISA and will theoretically trade as a summation of the aforementioned ratio of sentiments to changes in value periods. The longer a positive market move is sustained with positive sentiments, the more sensitive DDS becomes towards positive moves. The shorter a positive market move is sustained - or if a negative move is made - paired with negative sentiments the more the asset depreciates. Over time - the range will rise or fall based on the relationship between the two, but the bias representation of ratios will remain consistent.
Like all collateralized products on our platform, sRho is used to secure the short position. DDS utilizes a 2:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint sDDS - with the minter receiving sDDS in return as a receipt.
A 2.5% fee applies to swapping sDDS. sDDS can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sDDS at a daily interest rate of 0.2% per day - which will be paid for in sRHO. This daily interest will be calculated at the time of establishing the short by entering the maximum number of days you will be short for. Once the time limit is up - the short contract will expire and the short closed. If DDS is below the price when the short was initiated, the aggregated long pool of DDS will pay the unit count worth of profit to the now closed short holder. The time interest the short paid to the collected pool of longs will then be distributed to the longs proportional to their positional unit count.
However, the interest will only be paid to the long holders that were in the pool at the time the short was established. If a short-seller chooses to close out their position at a loss, the collateral lost will be divided among all long sDDS unit holders that were in the pool at the time the short was established. If the short-seller closes out their position at a profit, the percentage of the profit will be divided amongst all long sDDS and the appropriate sDDS units will be transferred to the short-seller as profit.
Shorting above the total float of DDS in the lending pool is prohibited.
