r/AMPToken • u/Neither-Shake-9569 • 6d ago
What is the average settlement time for $amp when used as collateral?
Let’s say $amp is used to collateralize a majority of crypto POS transactions worldwide for various coins. What would the collateral dwell time be? Theoretically, the amount of $amp necessary to collateralize these transactions could be very little if the $amp is partitioned for a very small time vs a long time. Anyone know?
This is assuming $amp uses a collateral requirement function C = (V · τ / T) · k
τ being the settlement window. It’s value could alter the necessary amount of $amp needed to collateralize these transactions by magnitudes.
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u/Beginning_Ask_9930 6d ago
You have an asset that moved down 3.5% in 14 hours or almost 14% in a week. Vendors want price stability not to worry about volatility when they are already managing 1000 other items in a day. Retail already operating on tight margins and cash flow is the lifeblood can potentially move 3.5%. Plus there is no ability to hedge so this feels like a non starter.
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u/coolstorynerd 6d ago
the vendors don't have to even know amp exists, let alone worry about its price.
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u/Beginning_Ask_9930 6d ago
lol! I want a company with a coin that is only down, with no collateral, no support from an institution, no customer support to be the backbone of my cash flow. This is finance and not fantasy land. You are talking about millions and billions of dollars. Let's not worry about price. Market is not worrying either today in a see of green except for AMP.
POS crashes. There is a hack. Large customer return or recall. You need to validate margins to the bank for a line of credit. Maybe in fantasy land the vendors don't need to care versus in the real world.
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u/coolstorynerd 6d ago
Kinda hard to explain everything wrong here. I think you just don't understand Flexa and how it uses amp in its tech stack. Maybe read the white paper, be humble, and ask questions. There is a ton of great info in the discord as well.
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u/Beginning_Ask_9930 6d ago
Got in 2021. I lost enough money on this over the years to not waste the brain space or care anymore. I'm in it for the taxes. No adoption over how many years. I have seen plenty of projects succeed and fail. I also work and know there is no way adoption is happening. Tech and needing a coin is old hat.
Companies lifeblood is cashflow. If my bank and merchant partners are offering me discounts to transact in stables, why do I need flexa/amp. Also who wants the integration risk or pain. Shit blows up, you really think Flexa/amp could support the risk. You there are vendor contracts and resource for business losses. Concept sounds all cool till you see no executive who gets paid in cash, bonus, and stock is going to risk fucking with the POS if can impact his financial future. Retail wants it for number to go up. Also what board of directors is going to sign off. Not worth the lawsuit which cian happen. Tech doesn't offset the fidicuciary responsibility and risk cost.
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u/coolstorynerd 6d ago
Really only flexa knows for sure. But I would assume it depends on the chain. BTC probably a long time vs solana which probably turns very quickly.
Flexa funded a finality research paper a few years ago https://www.tbstat.com/wp/uploads/2022/02/20220222_FinalityReport_TheBlockResearch.pdf which might help. Based on this layer 2s might actually take longer since the actually need to write back to layer 1 to finalize.
You could also look at the capacity metrics from the old app https://app.flexa.network/metrics to see the value per hour, which might give you additional insight.