HOW TO BUY/SELL Hero

Step 1

Setup account
& Buy BitShares

Step 2

Buy HEROS using BitShares

Step 3

In the future you sell your HEROS
for BitShares
or initiate forced settlement
to obtain BitShares

Step 1

Setup Account &
Buy BitShares

Step 2

Borrow HEROS up to 50% of BitShares
Current Market Value

Step 3

Sell HEROS

Step 4

To unwind position at a future date
Buy HEROS
(expected profit is from the rise of BitShares)

The HERO is a new kind of blockchain-based digital currency. It has all the advantages of crypto currencies (fast, cheap transaction, no middlemen, counterpart-party risk free, decentralized, accessible, etc.) but, unlike others, HERO has a predictable price.  The HERO can be sold short & borrowed in BitShares or BitUSD.

The HERO is a formula-pegged asset on the BitShares blockchain. It’s value is pegged to USD-denominated formular as simple as:

USD since creation of the FED + 5% a.p.r.

This predictability constitutes a USD-pegged, component and a yearly capital appreciation of 5%. This fixed yearly capital appreciation isn’t quite like interest as it does not pay out HEROs every once in a while, but instead, the USD-valuation of HERO grows at a fixed 5% per year.

The HERO formula

The USD value of HERO can be derived in python with

from datetime import date
print(1.05 ** ((date.today() - date(1913, 12, 23)).days / 365.2425))

Description:

  • 1.05 corresponds to +5%
  • ((date.today() - date(1913, 12, 23)).days is the number of days since 1913/12/23
  • 365.2425 is the length of the year (for a +5% APR) as per the Gregorian calendar

As of 2017-05, the HERO requires at least 7 feed producers to have published a price no older than 24h. As long as at least this amount of feeds are available, HEROs can be borrowed and margin calls as well as settlements will be executed. It is the duty of the Management to ensure sufficient feed producers are available at all times.

Step By Step - How To Buy & Sell HEROS (Unwind Your Purchase)

Buying HEROS is actually very easy to do.

  1. Set up your account with bitShares.org
      
  2. Buy HEROS for your account.  If you do not have BTS in your account you will need to buy them, as this is the native cryptocurrency for HERO:BTS and the base currency of this decentralized exchange

    1. When you have BTS in your account, click the ‘Top Markets Icon’ on the navigation bar along the top left and then click "HERO:BTS" on the bottom of the Top Markets.  In other words, click thisand then click .
    2. You should now see a couple of graphs showing price history and some key information like volume and latest price along the top.
    3. Underneath you see dropdown boxes to BUY HERO . 1) Enter in the Price you are willing to pay or leave blank to pay current market price - BTS/HERO, 2) Enter Quantity HERO (number of HEROS to purchase )and Total will be automatically calculated.  You have the option to place an future order by entering a price below market value if the market goes to the price you would like to purchase then your order will be fulfilled.

If there is nobody willing to sell at that price your offer will stay on the market until it gets filled, or until you cancel it. Your open orders will appear underneath the order form along the left hand side. They are color coded to match the tabs – green for buy orders, red for sell orders, blue for short sell orders.

How to Sell HEROS (unwind your purchase)

  1. Underneath you see dropdown boxes to SELL HERO . 1) Enter in the Price you are willing to sell or leave blank to pay current market price - BTS/HERO, 2) Enter Quantity HERO (number of HEROS to sell )and Total will be automatically calculated.  You have the option to place an future order by entering a price above market value if the market goes to the price you would like to sell then your order will be fulfilled.

SHORT SELLING THE HERO

If you want to borrow a HERO, simply sign a smart contract with the counterparty free BitShares network. No one else is involved. Give those honest robots permission to lock up some of your BitShares as collateral and you get handed a brand new HERO to hold or sell. You now have an asset appreciating at +5% APR and twice that initial value appreciating with BTS. Go buy whatever you want with your double-collateralized HERO. Maybe more BTS?

If there is great demand for the HERO, speculators will fill it by locking up BitShares to borrow HEROs from the network at 2x leverage — especially if they are confident that this will drive up BTS against the decaying dollar +5%. BTS only needs to grow by 3.33% annually for speculators to break even. BTS grew by over 400% in March and April – before anyone even knew about the HERO or EOS or This Summer. There is virtually no difference to the risk of adding +5% to the shorter’s equation, but there is a huge difference in the potential mainstream demand for the result.

So, the +5% comes mostly from
buying pressure induced appreciation in the growth phase
and increasingly from BitShares network profits approaching full scale.
 

The HERO is a new generation of privatizing international money, uncoupling money from the power and abuses of governments and their masters. It’s business money made by businesses for use by businesses.

How to Short Sell HERO

A BTS holder commits some of his BTS to be locked away in a collateral smart contract and then borrows HERO (50% of BTS). This person is then free to sell the HERO. Typically, you would borrow HERO when you think that HERO is overpriced in the market (or when you think BTS is underpriced), hoping that the price of HERO will drop (or BTS will rise) and you’ll be able to buy back the HERO you previously sold (i.e., sell back the BTS you traded it for) and recoup your investment.

 

Step by Step - How to Short the HERO

To start off, go to the HERO market asset page. click the "borrow bitHERO" tab on the SELL HERO trade screen.  You will see this screen.  Enter in Debt (amount of HEROS borrowed, Collateral (available BTS in your account), Collateral Ratio - not to exceed 50%.

 

 

 

 

 

 

 

 

You will see the following empty fields to be filled out:

  • Price Limit BTS/HERO: You can leave this blank if you like, in which case you will execute a short sell at market price whenever a buyer is willing to pay market price . Alternatively you can specify at exactly what price (or better) you are willing to short sell.
    Quantity HERO
    :  To Sell HERO you would enter a quantity of 1 into th
  • Total: Amount you receive in BTS

Then you just need to click the short sell button! If you call it wrong and the value of the asset goes up too much against BTS then your collateral may be used to automatically buy enough of the asset to cover your debt. If you click the cover tab you will see a list of all your open shorts. Each one will have its own ‘call price’. If the delegate call price shown near the top your wallet hits the call price of one of your shorts then this automatic sell off, called a ‘margin call’ will take place. You can also buy the asset at any time and then use it to cover one off your shorts from this same tab. To ‘cover’ just means to pay back your debt and close your position.

If you want to see the current short sell orders and approaching margin calls on the orderbooks from other people then you need to click the boxes for them next to the buy and sell orders.

 

BitShares Summary
At its heart is the Bitshares decentralized exchange, which can be used for trading various assets, including assets which track the value of ‘real world’ currencies, commodities like Gold, or a digital currency like Bitcoin, without the need to trust your wealth to a central bank or exchange.

Like any financial market, there are plenty of opportunities on the Bitshares decentralized exchange for traders to make themselves a profit, or a loss, depending on their performance.

Bitshares is a brand of open source software Blockchain technology that is substantially evolved based on the original Bitcoin platform.

Bitshares is a Decentralized Autonomous company(DAC) that offers high quality financial services worldwide.  Anyone can buy it without any restrictions.

Bitshares is software, Bitshares is a network, Bitshares is a Ledger, Bitshares is a company, Bitshares is an Exchange, Bitshares is a bank. Bitshares is a currency, Bitshares is a community and, of course, Bitshares is a Country. Bitshares is a small town on a global scale. Bitshares is a fast and versatile Payment network. Bitshares is Blockchain platform for win win situation.