/biz/ - Business & Finance

Listen up /biz/nessmen! I have an idea.

If one could control the settlement feed of a smart asset, what would be an ideal shape for the curve?

I was thinking something cyclical has to be involved, so right off the bat a sin will be in the equation.

My first thought was "how would I do a 'proper' sine wave on a price chart?" What I mean by 'proper' is if the price was range-bound between two horizontals then the price of 1 would fall in-between the two and the boundaries would be reciprocals of each other. Also, I wanted to have the curve, say, double one's money at peak if bought 1, but halve one's money at trough if bought at 1.

After some tinkering, I came up with a curve which fit the bill (pictured).

I just wanted to make a thread to get some ideas as to how, for a hypothetical [say] BitShares smart coin (the kind you short into existence with BTS collateral), should the settlement price move to both generate trading interest and [time permitting] allow most to profit regardless of entry and direction?

(Originally inspired by finding out bitHERO is pegged to USD but at 5% appreciation rate, better than a bank!)