Ethereum on Roads Less Taken

CORE floor price musings

Sun, 01 Nov 2020 00:00:00 +0000

I have already written three different articles explaining how CORE floor price can be calculated. But just a day or two back the CORE team decided that using the floor price concept in communcation doesn’t work out very well. Why? Because a LOT of people just can’t seem to understand it properly and keep perpetuating wrong conclusions around it. In short - people can’t understand math :)

A list of common misconceptions are:

Floor price is the “correct value” of CORE and that the current price then must be too high
Floor price is some kind of approximation and the price can actually go lower
Floor price is a technical analysis support level
Floor price can change if another market starts trading CORE lower
Floor price can never ever go down in USD value
Floor price can never ever go down in ETH value

And a whole bucket of other misconceptions - just pile it on! Let us start with an explanation of what floor price ACTUALLY IS and then go through the above list…

CORE floor price over more pairs

Thu, 29 Oct 2020 00:00:00 +0000

In the previous article I explained the principles behind CORE’s floor price, the lowest price that CORE can reach. It’s a novel concept and a very interesting characteristic of CORE.

I showed the mechanisms involved and how to calculate the floor price, if we only have a single trading pair to worry about. I have also solved the equation for two trading pairs, that equation is currently used in RoboCORE with success.

But how to handle three pairs or more? Complexity seemed to spin out of control, but… it turns out there is a simple solution!

CORE floor price short howto

Thu, 29 Oct 2020 00:00:00 +0000

In the previous two articles I explained the principles behind CORE’s floor price, the lowest price that CORE can reach and ended it all by explaining the “q method” that works for any number of CORE pairs. For lots of people that was possibly an overdose of math, so … here is the super short and lacking any explanations on why description on how to calculate floor price of CORE using the “q method”.

Everything you wanted to know about CORE floor price but was too afraid to ask

Wed, 28 Oct 2020 00:00:00 +0000

The last month I have gotten involved in a fairly new crypto currency project called CORE , or cvault.finance . My main contribution is RoboCORE a chat bot operating on both Discord and Telegram serving the CORE community with various calculations and notifications.

A concept central to CORE is what is known as “the floor price” and in developing RoboCORE I had to learn how to calculate it properly. This concept is a bit hard to grasp, so this article tries to clear up the fog!

What is a floor price? It’s simply the lowest price CORE can ever reach. It’s not a floor in fiat, like the USD, but rather a floor measured in ETH (or BTC), the assets CORE is traded against. So if those drop to zero in worth, then there is nothing CORE can do about that!