A cryptocurrency that lets you buy
and sell nearly any streaming data...
recreates the dynamics of trading,
but without counterparties...
completely solves the liquidity problems
which beset similar systems.
Using an oracle, any Overlay coin (OVL) holder can query a set of streaming data sources, such as the USD/EUR exchange rate, the Consumer Confidence Index, the number of albums sold by an artist last month, and so forth.
Any fraction of an OVL token can be locked to a single market price by opening a virtual trade, which is a buy or a sell of a market at whatever value the oracle yields for the data stream.
At a later time, the owner of those OVL can unlock them. The value of the data stream will be queried again, the difference in value between unlocking and locking time will be computed as a percentage return.
The original amount of locked OVL in the owner’s wallet will be increased or decreased by that percentage. OVL tokens are created and destroyed dynamically upon unlocking, and so a user’s net OVL worth depends on the quality of virtual trades that user makes.
Liquidity is a pain point in crypto and elsewhere. Overlay allows users to trade against a network, not a single counterparty.
Because there are no counterparties, there is no price impact. Any OVL trade, of any amount, settles at a single price.
Global data sources and interest in monetizing data will continue to grow. Overlay allows pure data to be traded, creating financial instruments unavailable anywhere else.
When the network is young, Overlay will pay users to trade. As the network matures, users pay a small fee (around .01% or even .005%) to trade.
Users have the option to take payouts in the equivalent of a fiat currency, rather than OVL. No matter what the OVL price does, the trade return is guaranteed.
OVL can track USD, EUR, RMB, allowing for cross-border payments in the equivalent of the payee’s currency.
The more users Overlay has, the more stable it becomes and the better it works.
Overlay will expand the financial world by many orders of magnitude.