Title: A system for adjusting the value of stable cryptocurrencies based on inflation and deflation trends and stabilising exchange rates without liquid asset reserves

Authors: Benedict de St Amatus

Addresses: Solarius Technologies, D1-4 Cockatoo Cr., Forest Glen, QLD 4556, Australia

Abstract: This study presents a new system and algorithm aimed at overcoming the persistent issues of volatility and liquidity management in cryptocurrency trading. By removing the dependence on substantial liquid asset reserves typically necessary to stabilise fluctuating cryptocurrency exchange rates, this system considerably lessens the financial strain on traders and increases market fluidity. Furthermore, the algorithm's ability to dynamically adjust the values of stable cryptocurrencies according to inflationary and deflationary trends improves the accuracy with which these cryptocurrencies match the values of their pegged external assets. This enhancement bolsters their practicality and dependability as financial instruments and improves the predictability and stability of cryptocurrency markets.

Keywords: cryptocurrency trading; volatility management; liquidity management; stablecoin stability; cryptocurrency exchange rates; liquid asset reserves; inflationary trends; deflationary trends; market fluidity; financial instrument stability.

DOI: 10.1504/IJBC.2024.142285

International Journal of Blockchains and Cryptocurrencies, 2024 Vol.5 No.2, pp.118 - 135

Received: 01 May 2024
Accepted: 16 Jul 2024
Published online: 16 Oct 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article