@IIICapital@TimKotzman $SATA is having over 50 million in volume today. It can be maintained over the course of the month and over$100 this is going to the moon
@LizardWizardBTC They’re kinda daily divds… (monthly divd)/(business days in the month)
I imagine there will still be some arbitrage during trading hours and over the weekend as the “rate” will be mathematically less than the weekdays days.
Jeff Walton: "Is an insurance company a Ponzi scheme?"
Coffeezilla: "No. They have business activities that are providing cash flow. They're taking on risk."
Walton: "Insurance companies have capital and they're taking on risk to pay liability into the future. Almost 100% of the claims that get paid out on insurance company balance sheets is from premiums that they're collecting in the door. So under your definition, you would call an insurance company a Ponzi scheme."
Coffeezilla: "No, no. They have real profits. They have real cash flows."
Walton: "The profits are the assets that are protected on their balance sheet."
Coffeezilla: "People are paying for products."
Walton: "What's the product?"
I brought this up because I think the heavy selling near ex divd is a cause of excess volatility and makes $SATA less money market like.
What customers do you want?
1) buy and hold only
2) buy and sell around divds
You may be able to reduce number 2 significantly with very clear strategy and signaling and without the need for daily divds.
@PunterJeff@IIICapital
Getting all volatility out of $SATA is likely impossible due to sell off after ex divd date.
If you managed the accrual of the divd over the course of the month through you selling it could be very beneficial for a bunch of reasons.
The idea:
1) don’t sell below par (ever)
2) don’t sell below accrued divd
Example1 : on ex divd date don’t sell below 101.08
Example2 : half way to ex divd date don’t sell below 100.54
3) publish your accrued divd every 15 secs
The thought is that this will give a steady hand to the market, it will increase the probability of daily $SATA sales.
You could create a new $SATA KPI as well that is volatility relative to the accrual.