Price Stabilization Mechanism
Purpose of the Price Stabilization Mechanism: The purpose of the automated mechanism is to a) provide liquidity to the market by making certain that 50% of the purchased value stays within the Deriveum market and b) reduce volatility by providing public, deep and instantaneous price support levels.
Publicity: The Price Stabilization Mechanism (PSM) will be public in all its actions, underlining logic and strategy.
Execution: The PSM will be executed in public trading, and the information of its transactions and current balance will be available online.
Technical tools for the execution: Automated execution by algorithmic trading program (public orders on an exchange) with access to the Price Stabilization fund.
Description: The price stability mechanism has two integral technical parts – the algorithm for market intervention and the price index.
The algorithm will be connected to secure ethereum account[1] that will be locked for interventions for the duration of the token. The account will be governed by a published algorithm. Once the Deriveum’s price reaches a support level the algorithm will start selling or buying tokens respectively. A list of the support levels and the token distribution is part of this Note.
[1] Depending on the market conditions and technical availability the Project will reserve the powers to change the underlining block-chain platform/technology from ethereum.
