What Is ETH 20 Day MA Crossover Yield Set (ETHMACOAPY)?
ETH 20 Day MA Crossover Yield Set attempts to capitalize on shorter term trends and accumulate ETH. ETHMACOAPY automatically triggers re-balances when the price of ETH crosses the 20 Day Simple Moving Average (20 SMA) indicating a trend reversal. If the price of Ethereum crosses and stays below the 20 SMA, the Set re-balances from ETH into Compound USDC and automatically accrues interest on your cash when the market is bearish.
This change in net asset value is the re-balancing slippage. This is by design, and built for future use to incentivize open market participants if they want to help with re-balances once re-balance sizes become larger. After all of the collateral has been re-balanced to its new weights, the re-balance is settled, and buying, selling, issuing, and redeeming are all reactivated again.
ETH 20 Day MA Crossover Yield Set Storage Key Points
|Coin Name||ETH 20 Day MA Crossover Yield Set|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
All Sets ETH 20 Day MA Crossover Yield Set when strategy criteria are met. For Trend Trading Sets, the criteria are time since last re-balance, and the indicator. Learn how re-balances work. As more time passes in a Set dutch auction, less under-collateralized tokens are needed in exchange for over-collateralized tokens in order for a Set to re-balance to its target weight.
During this process, the changing ratio for under-collateralized tokens in exchange for over-collateralized tokens naturally changes the net asset value of the Set as some of the value is either taken out or added in by the re-balancing liquidity provider.
How Rebalances Work
Re-balancing is the process of realigning the weights of a Set, which involves periodically purchasing and selling components to maintain a certain allocation. Typically, users re-balance their portfolios actively by reviewing their portfolio, calculating the optimal allocation, and then trading their excess tokens for the missing tokens needed to create the new portfolio.
Trend Trading Sets aim to capitalize on the price trend of a target crypto asset using popular technical trading indicators such as moving averages. Trend Trading Sets automatically re-balances into a stable asset on signals confirming bearish trends and into the target asset on signals confirming bullish trends.
The underlying tokens must go through enough price movement in order to justify a re-balance. On each Set page, ETH 20 Day MA Crossover Yield Set show the re-balancing criteria to easily visualize if a re-balance is ready to take place. The amount of time a Set needs to wait in order to execute a re-balance. This is applied in order to avoid re-balancing multiple times in a short period of time which would result in higher likelihood of re-balancing slippage, and extra downtime of buy, sell, issuance, and redemption.
For the most part, Set ETH 20 Day MA Crossover Yield Set based on two criteria which are based on the Set’s strategy and the asset that its collateralized by. It’s important to note that users may incur a small amount of slippage during a re-balance under certain circumstances. Re-balancing slippage is a side effect of a dutch auction mechanism used in a Set’s rebalance. In a simplified explanation, the more collateral there is to re-balance in a dutch auction system, the more time it will take to re-balance all the collateral.
When all re-balancing criteria are met, the Set enters the proposal period, a grace period where Set token holders can review the proposed re-balance parameters and opt out if they disagree with the proposal. All actions such as buying, selling, issuing, and redeeming are all available during this period.
Once the proposal period ends, the Set enters the re-balancing phase. During this time, buying, selling, issuing, and redeeming are all paused, and the over-collateralized token(s) are traded for the under-collateralized token(s) in a dutch auction by liquidity providers.
At the moment, market makers provide most of the liquidity for re-balances with the eventual goal to open it up to other participants. The liquidity for re-balances is not sourced from Khyber. Liquidity is only sourced from Kyber when you acquire or dispose a Set.