Hertz
Disclaimer
The purpose of this webpage is purely educational, as such, please read the following warning as well as the full disclaimer:
This website serves as a source of technical documentation for the HERTZ asset on the BitShares blockchain. We are not a broker/dealer, we are not an investment advisor, we have no access to non-public information about HERTZ, and this is not a place for the giving or receiving of financial advice, advice concerning investment decisions or tax or legal advice. We are not regulated by any Financial Services Authority.
Read the full Disclaimer
What is the 'Hertz' Algorithm Based Asset (ABA)?
Hertz is a highly experimental Market Pegged Asset (MPA) created on the Bitshares network. Hertz tokens are shorted (borrowed) into existence by users on the Bitshares network with at least 200% backing collateral in Bitshares; there is no centralized issuance and asset creator permissions have been restricted for increased decentralization.
The sine wave has an amplitude of 14% and a period of 28 days, thus the price feed value changes 2% every day with a resulting maximum price feed value of $1.14 and minimum of $0.86.
Trusted Bitshares accounts will publish price feeds which are pegged against the United States Dollar (USD) and predictably modified to oscillate using a sine wave algorithm.
The median price feed value provided by the trusted price feed publishers establishes the settlement rate, which is how much you'd get for settling any held Hertz tokens. Remember that the settlement rate is fundamentally not the same as the market rate; market participants are free to trade at market rates offset from the settlement price & against any market trading pair.
A chart indicating the price feed value over time.
Example price feed values:
- Repeat:
- 0 days: $1.00
- 7 days: $1.14
- 14 days: $1.00
- 21 days: $0.86
- 28 days: $1.00
Properties of Hertz (Hz):
- Amplitude: 14% (NOT 33% nor 50% - It was changed to 14% for the first HERTZ asset).
- Period: 28 days.
- Daily price feed change: 2% per day ($0.02)
- Reference asset & value: $1.00 (USD)
- Max price feed rate: $1.14
- Min price feed rate: $0.86
- Reference timestamp: BTS2.0 Genesis block timestamp.
- Phase: 0.908056 days (Sets Wednesday as the primary Hz day)
Smartcoin settings
- Maintenance collateral ratio (MCR): 200%
- Maximum short squeeze ratio (MSSR): 110%
- Max feed lifetime: 1440
- Delay for forced settlements (minutes): 1440
- Percent offset of forced settlements: 1%
- Min number of feeds: 10
Price feed scripts
- Reference Python scripts & calculator
- hertz_calculator.xlsx : A spreadsheet for evaluating the effect of different sine wave variables (amplitude, period, etc).
- hertz-verification.py : Used for verifying that the phase offset lines up appropriately.
- hertz-feed.py : Reference price feed script
- Also: Systemd service/timer for constant publishing
- Xeroc's 'Bitshares-PriceFeed'
- Wackou's BTS_Tools (Clone the repo, pip has an old release).
- TODO: btsprice hertz implementation
Who can currently provide price feeds?
Approximately 20 active witnesses and trusted Bitshares accounts have been provided permission to publish price feeds for Hertz. If you require permission, please do join the Telegram channel and contact an admin. You can monitor the price feeds being published either within the Bitshares wallet or on the reference price feed monitoring page.
Example Python snippet breakdown
The price feed scripts are MIT licensed, anyone could issue their own alternative Hertz ABA with different hertz parameters (within reason).
The following code doesn't include the input values, please check the above listed price feed scripts for more details.
hz_reference_timestamp = pendulum.parse(reference_timestamp).timestamp() # Retrieving the Bitshares2.0 genesis block timestamphz_period = pendulum.SECONDS_PER_DAY * period_dayshz_phase = pendulum.SECONDS_PER_DAY * phase_dayshz_waveform = math.sin(((((current_timestamp - (hz_reference_timestamp + hz_phase))/hz_period) % 1) * hz_period) * ((2*math.pi)/hz_period)) # Only change for an alternative HERTZ ABA.hz_value = reference_asset_value + ((amplitude * reference_asset_value) * hz_waveform)Want to know more?
Check out: "What is the HERTZ Algorithm Based Asset?"