The Hodl stock is an in-platform digital asset managed by the Hodl Properties, which is a private limited company underwriters the equity of commercial properties. The concept of the Hodl Stock is based on the protocol for the Hedging Assurance Contracts that originally governed the relationship between the creditor and debtor, namely underwriters, publishers and auctioneers. The process is to give a partial guarantee to the creditor with the aim of reducing the risk of the borrower, while still giving him the ability to manage his or her funds through borrowing.
The Hodl Stock is created by an algorithmically trained adviser who has the task of trading on behalf of investors. Since the adviser can predict changes in the market just by looking at the last five years of data, the Hodl Stock is not meant to function as a traditional hedge or a currency. Rather it is meant to be an intuitive self-trading platform using the protocols of the decentralized ledger called the Dash. This is because Dash is the protocol that underlies the entire decentralized exchange protocol.
The analyst working on the Hodl Stock understands the challenges facing the investor when choosing a protocol to use for their hedging strategy. For this reason, they spend the majority of their time testing the various protocols to determine their suitability to the tasks at hand. Once the protocols are tested, the analyst assigns them an identification number. This number represents their proprietary identity in the community, which means that any investor who wants to test their methodology can use the previous identifying code to test different strategies. They also keep track of the average losses and profits of each and every investor on the platform to determine their efficiency in the marketplace.