METHOD AND DEVICE FOR CONTROLLING A CRYPTOCURRENCY

Abstract

A method for controlling a cryptocurrency based on a bonding curve predefined for a rate of the cryptocurrency. In the method, in a commercial transaction involving the cryptocurrency, a shift of the curve to be applied is calculated based on a previous course of the rate. The curve is integrated and the rate for the commercial transaction is set based on the curve and on a predefined bid-ask spread. The course is updated. Effects of the commercial transaction on the rate are established and taken into account.

Claims

1. A method for controlling a cryptocurrency based on a bonding curve predefined for a rate of the cryptocurrency, the method comprising the following steps: in a commercial transaction involving the cryptocurrency, calculating a shift of a curve to be applied based on a previous course of the rate; integrating the curve and setting the rate for the commercial transaction based on the curve and on a predefined bid-ask spread; updating the course; and establishing and taking into account effects of the commercial transaction on the rate.

2. The method as recited in claim 1, wherein the rate is a buying rate, and after setting the buying rate, the shift of the curve is calculated for a selling rate.

3. The method as recited in claim 1, wherein the rate is a selling rate, and after setting the selling rate, the shift of the curve is calculated for the buying rate.

4. The method as recited in claim 1, wherein: the shift includes an additive component, and the shift includes a subtractive component.

5. The method as recited in claim 4, wherein the additive component is selected in such a way that the rate set according to an original curve prior to the commercial transaction coincides with the rate set according to the shifted curve after the commercial transaction.

6. The method as recited in claim 4, wherein: the additive component is a function of a volume of the commercial transaction, or the additive component is a function of the rate prior to the commercial transaction, or the additive component is a function of the rate after the commercial transaction.

7. The method as recited in claim 4, wherein the subtractive component is selected in such a way that a bid-ask spread at a low trading volume converges toward the predefined bid-ask spread.

8. The method as recited in claim 1, wherein a type of the shift or the contributions incorporated into the shift are configured in such a way that an efficient calculation is possible, even in larger time steps or after an elapse of multiple time steps for which no recalculation has taken place.

9. A non-transitory machine-readable memory medium on which is stored a computer program for controlling a cryptocurrency based on a bonding curve predefined for a rate of the cryptocurrency, the computer program, when executed by a computer, causing the computer to perform the following steps: in a commercial transaction involving the cryptocurrency, calculating a shift of a curve to be applied based on a previous course of the rate; integrating the curve and setting the rate for the commercial transaction based on the curve and on a predefined bid-ask spread; updating the course; and establishing and taking into account effects of the commercial transaction on the rate.

10. A device configured to control a cryptocurrency based on a bonding curve predefined for a rate of the cryptocurrency, the device configured to: in a commercial transaction involving the cryptocurrency, calculate a shift of a curve to be applied based on a previous course of the rate; integrate the curve and setting the rate for the commercial transaction based on the curve and on a predefined bid-ask spread; update the course; and establish and take into account effects of the commercial transaction on the rate.

Description

BRIEF DESCRIPTION OF THE DRAWINGS

[0016] Exemplary embodiments of the present invention are represented in the figures and explained in greater detail below.

[0017] FIG. 1 shows a first bonding curve.

[0018] FIG. 2 shows a second bonding curve.

[0019] FIG. 3 shows a third bonding curve.

[0020] FIG. 4 shows the graph of an exponential function.

[0021] FIG. 5 shows the flowchart of a method according to one first specific embodiment of the present invention.

[0022] FIG. 6 schematically shows a server according to one second specific embodiment of the present invention.

DETAILED DESCRIPTION OF EXAMPLE EMBODIMENTS

[0023] FIG. 1 illustrates a simple—here, sigmoid—bonding curve in the form of a dashed line. This has been supplemented by one further curve respectively for bid-ask rate 8. For the sake of simplicity, uniform curves have been used in the present case; in general, any rate 8 may follow a different curve.

[0024] The two curves are shifted at the “operating point” defined by present circulation volume 7 and marked on the dashed line by the amount ΔP.sub.b and ΔP.sub.s with respect to the initial curve.

[0025] The effective value, for example, for ΔP.sub.b is made up of a variable and a fixed portion, the latter ensuring a minimum price range:

ΔP.sub.bΔP.sub.b,var+ΔP.sub.b,min  Formula 1

ΔP.sub.s=ΔP.sub.s,var+ΔP.sub.s,min  Formula 2

[0026] Thus, the following is applicable for bid-ask spread ΔP

ΔP.sub.min=ΔP.sub.b,min+ΔP.sub.s,min  Formula 3

and

ΔP=ΔP.sub.b+ΔP.sub.s.  Formula 4

[0027] In one general formulation, a greatest possible spread would typically be applied.

[0028] Individual portions ΔP.sub.b and ΔP.sub.s may be concordantly selected, however, this is generally not required.

[0029] It is now assumed that a purchase with a particular volume (6-FIG. 2) is ordered. As usual, the function underlying the bonding curve for the buying rate (substituted hereinafter by “the curve” for short) would be integrated via interval [X,X.sub.n], in order to set the rate 8. This would accordingly be the procedure in the case of a sell order with the selling rate and its bonding curve.

[0030] X.sub.n in this case marks the new operating point after the ordered commercial transaction.

[0031] In order to map the dynamics of the bid-ask spread, a dynamic shift ΔP.sub.s,var,add of the curve of the selling rate is introduced according to the present invention. Dot-dashed curve 3 in FIG. 3 corresponds to the original selling rate prior to the commercial transaction. Solid line 4 refers to the actually shifted curve. Shift 5 is given as ΔP.sub.s,var,add−ΔP.sub.s,var,sub.

[0032] ΔP.sub.s,var,add could be selected in such a way that the (selling) rate 8 set according to shifted curve 4 in point X.sub.n coincides with (selling) rate 8 set according to original curve 3 in point X, as illustrated in FIG. 3. (In the case of ΔP.sub.s,var,add=0 a fixed bid-ask spread would result. In deviation thereof, Δ P.sub.s,var,add could be defined as an arbitrary other function of rate 8 before or after the commercial transaction or of its volume 6. This also includes, for example, a disproportionate increase of ΔP.sub.s,var,add for large trade volumes.

[0033] This approach, which may be readily applied to the buying rate, relates to the first aspect of an appropriate dynamic of the bid-ask spread, namely the increase of the spread during brisk trading and high volumes. A second aspect relates meanwhile to the convergence of the bid-ask spread toward its predefined minimum in the absence of trading, which in the overall view makes it possible to adequately achieve a bid-ask spread as a function of the trading volume.

[0034] For this purpose, the subtractive component ΔP.sub.s,var,sub is introduced, which reduces the bid-ask spread.

[0035] The equations for the points in time n and n+1 determined—for example, by blocks—result under the assumption that the individual portions have already been allocated in ΔP.sub.s,var,n at point in time n as follows:

ΔP.sub.s,n=ΔP.sub.s,var,n+ΔP.sub.s,min.  Formula 5

[0036] The additive component for increasing the bid-ask spread as presented above and the subtractive component explained below are now calculated in such a way that the following applies:

ΔP.sub.s,n+1=ΔP.sub.s,var,n+ΔP.sub.s,var,add,n+1−ΔP.sub.s,var,sub,n+1+ΔP.sub.s,min  Formula 6

with

ΔP.sub.s,var,n+1=ΔP.sub.s,var,n+ΔP.sub.s,var,add,n+1−ΔP.sub.s,var,sub,n+1.  Formula 7

[0037] Subtractive component ΔP.sub.s,var,sub,n+1 may in general be a linear, logarithmic, exponential or other function of the instantaneous and previous shift ΔP.sub.s. It corresponds preferably to a discretized decay function for ΔP.sub.s. A larger bid-ask spread should result, for example, in a quantitatively larger subtractive component, the subtractive component decreasing, the closer ΔP.sub.s approximates ΔP.sub.s,min. ΔP.sub.s,var,sub could, for example, be an arbitrary function of ΔP.sub.s, ΔP.sub.s+ΔP.sub.b or of its previous course. It is selected in such a way that it may be easily calculated in the blockchain, even after the elapse of M time steps with no trade volume.

[0038] One approach for illustrating this would be the use of an exponential decay function of the following form:

[00001]$\begin{array}{cc}{\Delta P}_{s,\mathrm{var},\mathrm{sub},n+j}={\Delta P}_{s,\mathrm{var},\mathrm{Last}}.Math.e^{-\frac{j}{T}}& \mathrm{Formula}8\end{array}$

[0039] with

ΔP.sub.s,var,Last=ΔP.sub.s,var,n,  Formula 9

[0040] j referring to the number of ΔP.sub.s time steps elapsed prior to the update.

[0041] FIG. 4 illustrates the controllability of the exponential function, with the time steps and block steps being plotted on the right axis.

[0042] This is one example of an approach in which—regardless of the number of elapsed time steps without an update of ΔP.sub.s—a single function call is necessary for determining the result.

[0043] Note that, in principle, any arbitrary functional form could be used. Polynomial or other functions able to be easily calculated are recommended for a calculation within the blockchain.

[0044] ΔP.sub.s,var,Last thus relates to ΔP.sub.s,var at that time step at which ΔP.sub.s has most recently been updated. If an update is necessary—implementation-dependent, for example, with each commercial transaction or only with a purchase or sales transaction—ΔP.sub.s,var,Last is updated accordingly, at step k, for example, according to

ΔP.sub.s,var,Last=ΔP.sub.s,var,k.

[0045] It is noted once again that exponential decay represents merely one exemplary option without loss of generality.

[0046] Method 10 represented in its entirety in FIG. 5 may thus be summarized as follows: [0047] 1. in a commercial transaction involving the cryptocurrency—even after multiple non-trading time steps—a shift of the curve to be applied is calculated based on a previous course of rate 8 (process 11), [0048] 2. the curve is integrated and rate 8 for the commercial transaction is set as usual based on the curve and on a predefined bid-ask spread (process 12), [0049] 3. the course of the underlying values is updated (process 13), [0050] 4. the shift of the curve for the respective other rate—i.e., for example, of the selling rate in a sale transaction transacted at the buying rate—is calculated (process 14) if the embodiment provides that updates of one of the rates triggers the update of the respective other rate, and [0051] 5. effects of the commercial transaction on the rate 8 are established and taken into account (process 15).

[0052] This results ultimately in a numerically and, in terms of cost, efficiently calculatable, dynamic bid-ask spread, whose properties are able to be parameterized and the parameters are even able to be dynamically adapted. The parameters and functions could, for example, be selected in terms of the physical interpretability as approximations of a spring-mass system.

[0053] Method 10 may, for example, be implemented in software or in hardware or in a mixture of software and hardware, for example, in a server 20, as illustrated in the schematic representation of FIG. 6.