Liquidity pools are the backbone of decentralized trading platforms, but their success depends on more than just how much capital they hold. A deeper look at pool behavior reveals that the relationship between pool size, volume, and efficiency is complex, and getting it right requires a careful balance of several interrelated factors. I have identified […]
Tag: Stellar network
Price Volatility in AMM Liquidity Pools
Automated Market Makers (AMMs) play a central role in decentralized finance, but they also introduce unique behaviors in price volatility, especially when liquidity is unevenly distributed across trading pairs. By exploring both individual pool dynamics and system-wide liquidity effects, we can gain a clearer picture of how volatility emerges and propagates through AMM-based markets. Individual […]
Deflationary Compounding: Capturing Value from Market Volatility
I’ve watched digital markets long enough to notice something most people overlook: volatility itself can be a resource. What Is Deflationary Compounding? Deflationary compounding is a financial mechanism that systematically reduces token supply to increase token value through the mathematical certainty of automated market makers (AMMs). Think of it like a hydroelectric dam. The dam […]
Fourth Anniversary of XH5
Today is the Fourth Anniversary of XH5, a personal cryptocurrency project built on the Stellar network that has revolutionized my perspective of finance. XH5 is what I think about every day in a quixotic attempt to obtain value like growth from volatile digital assets, while also exploring practical applications for my theory of deflationary compounding. […]
XH5 Quarterly Report – Month 039
The Stellar Drones are Headless Hello Friends, On March 1st, 2023 Keybase dropped support for the .pub domain used to host files for web access. This means that the Stellar Drone home domain will never again be a source of information about the Stellar Drones. It will no longer point to a toml nor will […]
XH5 Monthly Report 037
Coming to America Hello Friends, This is my last month living in Mexico for a while, time to head back to the United States to live in the backcountry desert of Arizona. The good thing about XH5 is that other than my regular token buyback schedule, it is completely automated. Even if I die of […]
Stellar Drones: Chapter 1
“Money is the most important thing,” Siemens said, raising his glass of expensive Macallan single malt whisky, “He who understands it, prospers, those who don’t, suffer.” Alicia Bold nodded in agreement, impressed by the toast. Ned, on the other hand, couldn’t help but wonder if he should correct Siemens’s misquotation of Einstein’s famous phrase about […]
XH5 Monthly Report 036
Still Here Hello Friends, I apologize for not posting last month’s report as promised. The truth is, there hasn’t been much to report on lately with the Shave Vault being permanently locked. Most of the XH5 token redemption is now fully automated, which means there isn’t much for me to do on that front, and […]
XH5 Monthly Report 034
One Step Forward, Three Steps Back Hello Friends, Last month XH5 took a huge step forward when the Shave Vault was permanently locked on October 6th. For three years I have been making donations into that account in order to repurchase the outstanding XH5 tokens that have been given away. Now, with the account locked, […]
XH5 Monthly Report 033
Three Years Old! Hello Friends, I can hardly believe that it has been three years since XH5 was created! I was incredibly excited by the fact that XH5 had surpassed 1 million trades prior to its third anniversary. Unfortunately, the number of trades I had been tracking for months was soon altered on Stellar.Expert. It […]