What Is Microtick?
The Microtick Coin project is a new mechanism for decentralized price discovery and trading. Its vision is to create a trading system more suited for blockchain usage where blocks come at discrete, relatively infrequent and sometimes unpredictable times, and then build upon that vision to create a new trading paradigm that not only works better on, but promotes decentralized trading over the legacy centralized paradigm.
Microtick’s cooperative price discovery uses short-term “assert / insure” premium quotes that work together to bring improved consensus price stability as market makers compete to offer the lowest premiums to buyers on future price movement. It works well alongside traditional competitive price discovery such as order books or AMMs – as a liquidity engine due to arbitrage opportunities that come up during times of high market volatility.
Microtick Coin Storage Key Points
|Coin Name||Microtick Coin|
|Circulating Supply||No Circulating Supply|
|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|
Speculate and hedge with short-term leverage
Microtick Coin Competitive price discovery, as featured on every order book, DEX or AMM currently in existence, features opposing trade interests. Short-term fluctuations in supply and demand on these price competitive markets leads to price instability (runups or selloffs).
The Microtick consensus, being based on an average of price assertions is only indirectly affected by supply and demand. Whether the average price is accurate depends on whether markets are trending or mean reverting. This results in a two-sided marketplace where traders can get the best real-time premiums for price insurance on a very short-term basis.
Choose a trading timeframe that suits your needs: 5 minutes, 15 minutes, 1 hour, 4 hours, or 12 hours. Or, take the role of “Market Maker” and provide your own assertions about an asset’s price and volatility, and collect the premiums traders pay.
A Microtick Coin price assertion is a public commitment to a price observation, backed by an amount of value and insured for a standardized time duration to be accurate within a chosen range called the premium. The market maker is free to choose the values for the observation and premium. The lower the premium, the greater the weight the assertion gets in the weighted consensus. If the premium is too low, the market maker risks losing backing.
Status-quo price discovery encourages centralization
This Cosmos-based platform aims to address the inherent centralization in the way price discovery is usually conducted. As popularized by the book “Flash Boys,” centralization stems from the fact that price information is more accurate when a passive observer is closer geographically – or temporally – to where trade matching occurs.
This Microtick Coin type of centralization can also contribute to order execution problems such as front running where profit can be made by acting as a middleman in the order flow pipeline without incurring any risk or adding any liquidity to the market.
Beyond the order book
Because Microtick’s consensus price can be hedged in either direction, it has the ability to decouple price discovery from order book trade execution and bring the benefits of a global, real-time reference price to decentralized, private trades on the underlying asset – wherever in the world they may occur. They believe this approach has better long-term benefits for on-chain trading than building a decentralized order book or building oracles to import data into smart contracts using trusted data sources.
Microtick Coin core technology creates a market microstructure in which cooperative (assert / insure) quotes combine to replace traditional competitive (bid / ask) market orders, resulting in a more stable price discovery process – one that is less sensitive to price manipulation.
The Microtick project’s goal is to provide a globally agreed upon, real-time consensus price – without requiring direct financial coupling to any underlying asset. The project is built on decentralized blockchain technology and the game-theoretical foundation of Schelling points.
Unlike today’s so-called decentralized oracles that try to create incentives based on reputation, or slashing conditions based on time epochs and statistics, Microtick Coin is a real-time free-running, fully-tradeable marketplace with rolling time windows and linear payouts – derived solely from price movement. In addition, it will be able to operate across multiple chains in its fully realized form.
The price on a centralized exchange is only valid at the geographic location and instant that a trade is made. Market makers compete to locate physically close to the exchange in order to get closer to the “price singularity”. This leads to problems such as front running where market makers can see outside open interest enter the market and rapidly adjust prices to make a profit filling the trade.
This is due to the fact that information takes time to propagate out from the exchange to market participants, and the closer you are, the better off you are in knowing the current state and depth of the order book.
WITHDRAW ATOM TOKENS TO OSMOSIS
Because ATOM tokens are not the native Microtick asset, you’ll need to enable Advanced IBC Transfers in Keplr settings to transfer them. Select Microtick as the network then click on IBC Transfer. Add a new IBC Transfer channel, select Osmosis as the destination chain, and use “channel-16” as the source channel from Microtick. Transfer a very small amount as a test – and if that works you’re all set up.