The most important part of this project is the Price Stabilization Mechanism (also called Autonomous Stabilization Function - ASF). They opted to use machine learning to attempt to predict large selling or buying volume and then pro-actively act on that information. Not what I would have chosen, but if the prediction are relatively accurate it should still work. The fact that it is automated mean price stabilization can occur at high speed. However, that also bring a danger of nefarious entities attempting to take advantage of their algorithm which could deplete their treasury rapidly if there is no human intervention when things go wrong.
When excessive price movement occurs they also increase transaction fee to de-incentivize market participants. Again, I would have done things a little differently, but a tax (transaction fees) is critical to prevent snipper and front running bots from taking advantage of your algorithm, so I see the value in this approach.
They understand that having an over-collateralized treasury is the only way to prevent a bank run. Very few projects understand this fact, so while there is still risks, I'm relatively confident their approach is worth a try.
The real challenge is to ensure whatever index is picked for the tracercoin that it doesn't grow at excessive rate making the treasury fall behind and become under-collateralized.
The project also mention they will utilize liquid and non-liquid investments for the Active Treasury Management. However, they haven't mentioned that for non-liquid investments that it would be combined with long term staking, I suspect they have thought of it even if it was not specifically mentioned. Show Less
