How does token COIL “roll and roll back” occur, to match market supply and demand, with a special algorithm or otherwise?
Coil — “coils and recoils” around its $1 target. This is all done automatically through smart contracts. The Chainlink oracle pulls a 24hr volume weighted average price. Then talks to the rebase smart contract and rebases based on that. Then it syncs itself and updates all balance. Think of Coil like an automated Central Bank that adjusts it self every 23hrs automatically to the supply and demand within the market!
COIL’s target is the 2020 USD adjusted for CPI Inflation. When the price is over $1.05 Coil (rebase) automatically increases supply and distributes it to all addresses . When the price is under $0.95 Coil (debase) automatically decreases supply of all addresses. This is designed to create buying and selling pressure to push COIL back to its target price.
Rebase calculation: ((Oracle price – Target Price) / (Target Price)) * 10 = Rebase %
How reliable is Coil in bringing investors to financial freedom?
First, many rebase projects that peg their target to themselves or other cryptocurrencies are flawed and just marketing gimmick. To be DeFi collateral and a hedge asset, you need to peg OUTSIDE of the cyrptocurrency space. This is how you become less correlated and help hedge the risk, and this is very very important. Coil system is very unique and it is automated. They made the rebase every 23 hours in order to let the rebase move 1 hr every day. The team believe this way everyone around the world has a fair chance to trade or experience a rebase in their peak hours. What have gone a step further than Ampl and their geyser. They have made the Coil Spring. Think of it like a geyser on steroids. That's very similar to an Ampl geyser where you are paid rewards to add liquidity, but they added a unique twist. They added a Certificate of Deposit type of system on top.
The user able to choose 1–90 days to provide liquidity. The longer you provide liquidity the larger your rewards will be. Users can do any amount of time they want or as many different transactions as they want. Then they add the liquidity and stake their V2 Token in the Spring. The catch is if they choose 90 days, then decide on day 10 to pull their liquidity. They will pay a large penalty. This penalty buys Coil on the market and deposits the Coil back into the Spring rewarding all of those people that served their time! This will allow Coil to be much less volatile and much less manipulated from Ampleforth or other rebase coins.
When Coil is in positive rebase over $1.05, we positive rebase. Lets say price is $2 for 24 hours and you have 100 Coil. After 24 hrs Coil would add 10% and you would have 110 Coil. If it holds 24 hrs again at $2, you get another 10% on the TOTAL balance so you have 121. If it holds for another 24hrs at $2, you get another 10% and have 133.1. So yes you compound and since you are all very very early, there is potential for huge growth and a chance to earn financial freedom.
Coil Spring will encourage liquidity to REMAIN in the pool, but how does it achieve that? How will you encourage people not to withdraw their money from the pool?
This is how Spring is designed. Currently in liquidity pools and geysers like Ampl, large whales can remove liquidity and pull it without notice. This leads to a lot of manipulation and volatility. This can scare the market and make things very unstable. On top of that large whales can manipulate Ampl to bleed out the smaller investors so they have nothing left. The team saw a huge problem and set out to fix it. They designed Spring to have a Certificate of Deposit ( CD ) system on top much like you find in the real world. This makes it so everyone can see how much liquidity is locked in, how long it is locked in for, which allows everyone to make better decisions.
If someone elects to enter our Spring, they can choose to add liquidity for 1–90 days and/or they can do many different contracts. The longer you provide liquidity, the more rewards you earn. But if you say you will enter for 90 days, but then want to pull out after 10 days, you will pay a large penalty which is very similar to what would happen in the real world. This penalty buys Coil on the market and deposits it back into the Spring rewards pool going back to everyone else in the Spring that did what they said. This will make our liquidity more predictable, and much harder to manipulate. It will help all investors be able to better see and adjust to the market, it will decrease volatility, and stop some of the manipulation. It incentivizes and rewards all of the good network supporters that do what they say they are going to do, and penalizes the bad actors and manipulators and keeps liquidity in the pool from being removed.
