NegativeCoin (NGC)

As part of the Deriv.Ex project you will find here the general functioning of NegativeCoin, our first token correlated on a short position of bitcoin in absolute value.
The concepts and general idea of the project.
The general idea of absolute correlated tokens is the following. Our tokens have a price of their own, but their basic variation subject to the law of supply and demand, are also subject to the laws of supply and demand of a monopoly situation. We can thus create customised token prices. Let's take a simple example:
Suppose we have a token X that would be correlated to a cryptocurrency Y in order to hold a short Y position.
At t0 a period is defined:
- The value of Yt0 is 10000.
- The value of Xt0 is 2000.
In t1, a defined period after t0 :
What happens is this:
- The value of Y falls by an amount w. Therefore: Yt1 is Yt0 - w or 10000 - w
- The value of X is then Xto + ΔYt0 i.e. 2000 + w + the price evolution due to the law of supply and demand.