I’m seeking feedback on the merit of an idea which could reveal a new market-priced proxy for a risk-free rate (RFR). I assert that several niches of finance-related development in the ecosystem could benefit from learning about a native and global RFR decoupled from any central planning or state-associated actor.
I shared one rough implementation idea in a post, which could be summarised as:
The creation of a finite series of periodic smart contracts, which allow investors to bid on a donated-in-advance amount of ether, in exchange for locking up the winning bidders’ bids only to return it after a known-at-bid-time amount of time.
As example, lets say one of the contracts is launched with a donation phase of 6 months, a bidding phase of 1 month, then a lockup of 12 months, and assume 100 ETH was donated. If a bidder bid 10000 ETH, we would learn the RFR proxy for ETH is 1%.
The contract would need to be a set-and-forget type instrument, with no governance after instantiation to truly be a RFR. All actors involved in the setup of the experiment would likely have to be altruistic and operating pro-bono; since there can be no profit anywhere.
I believe I have the technical and domain skills to execute this experiment.
What I don’t have is:
- Marketing channels/audience/network to raise donations for the “interest”.
- Funds to pay to have the smart contracts audited.
- Time beyond reasonable levels of hobby-like capacity.
Do you think this experiment has merit? Do you think somebody might offer a pro-bono contract audit? Do you think people would donate?