Competing pegged currencies - bitUSD

[tomjoad]

I’m continually stunned by the marketing approach of BitShares. New this week:

Because nothing says “smart and effective tagline” like the only bolded word being a qualifying phrase with two asterisks.

On a more serious note, does anyone know where BitUSD went on coinmarketcap.com? I like to monitor our competitors as a matter of best practice but haven’t seen it listed for a few weeks. I can’t find any mention of it on bitsharestalk.org.

[Nagalim]

https://bitshares.openledger.info/#/asset/USD
I’m having a hard time finding the bid and ask volume though, all I see is the price feed and the collateral statistics. It appears there’s only $110k bitUSD in existence.

[cryptog]

no data in cmc recently.

[CoinGame]

Poloniex just added BitUSD/BTC and BitCNY/BTC markets • r/BitShares

Poloniex added bitUSD and bitCNY. Showdown on Poloniex is on.

[cryptog]

So far there is only a very thin liquidity

• https://poloniex.com/exchange#btc_bitusd
• https://poloniex.com/exchange#btc_bitcny

[Nagalim]

You can currently sell BitUSD for $1.07 on Poloniex. Not with terribly large volume, but the order book is pretty thin. I sent a request to CMC to add the market.

[CoinGame]

So when do we see the bitUSD/NBT market?

[zoro]

So when do we see the bitUSD/NBT market?

is this a trap question? i guess they will need the same (similar) bots as we have

[masterOfDisaster]

You can currently sell BitUSD for $1.07 on Poloniex. Not with terribly large volume, but the order book is pretty thin.

Mmmhhh - bitUSD/BTC:

bitUSD is not really an option for heding T4 buy side volatility:(

NBT/BTC:

[Nagalim]

Bitassets ends up with a fixed cost model of liquidity provision (paying LPs on their virtual exchange with bts). Sound familiar?

Liquidity has a Price -> Adding Maker / Taker - page 1 - General Discussion -...

Clearly there’s differences with our model. I just find it interesting that they’re using the same language we are.

[Nagalim]

Spot an Opportunity to Promote Nu? Post a Link in Here!

300% collateral

That’s not true anymore

[ttutdxh]

That is new info I am not aware of. Do you have a link with details?

[Nagalim]

I’m not super up to date on everything, but here’s some talk about it from a year ago:
https://github.com/bitshares/bitshares-0.x/issues/1273
I’m pretty sure this is now a variable in the code that a shorter can specify when they create a bitasset.

[ttutdxh]

That was an issue in their algorithm who waited for the collateral to devaluate 75% (3/4) before executing it.
Devaluation limit before collateral execution is designed to be 50%. If the collateral goes to half its price it is executed. With the other code it waited to be 75%

If I wanted a BitUSD I would have to put 2 USD as collateral in form of BTS + the one I want to buy = 3 USD (note the 1 USD to pay for BitUSD is part of the system, and thus considered collateral in the 300% expresion).

The bug waited until the value of USD to BTS declined until the point those 2 USD of BTS was 75% less (0.5 USD total in BTS prices) instead of the wanted 50% less (1 USD total in BTS prices) to “eliminate” the BitUSD contract.

It is still at 300% when created, and from then forward in time is, at least 200%.
Now it is not enforced, the minimum collateral is 175% now, so >275% of value at all times.

[Nagalim]

Graphene Documentation

Section 2 paragraph 2 only promises 100%.

[ttutdxh]

Yes, plus the payment for the BitUSD:

Spot an Opportunity to Promote Nu? Post a Link in Here!

If I wanted a BitUSD I would have to put 2 USD as collateral in form of BTS + the one I want to buy = 3 USD (note the 1 USD to pay for BitUSD is part of the system, and thus considered collateral in the 300% expresion).

[Nagalim]

That’s bts 1.0. It doesn’t mention that anywhere in the 2.0 white paper. Instead, on page 5, it talks about how shorters provide >100% collateral to keep above the price feed and the least collateralized position. It doesn’t have to be 300%, it doesn’t even have to be 200%. It’s just a promise that it’s >100% collateralization.

[ttutdxh]

Is exactly the same.

Spot an Opportunity to Promote Nu? Post a Link in Here!

It is still at 300% when created, and from then forward in time is, at least 200%.

Spot an Opportunity to Promote Nu? Post a Link in Here!

note the 1 USD to pay for BitUSD is part of the system, and thus considered collateral in the 300% expresion

That math takes into account the price paid for the BitUSD, the collateral per se is actually at least 100%, hence the promise >100%.

[Nagalim]

You keep quoting yourself instead of the whitepaper. You are not a good source, the white paper is. The white paper says the shorter can choose their collateral, and has incentive to give >100% collateral to avoid being settled immediately. There is no promise of 300% even at the time of bitasset creation. If I am wrong, please cite a source (other than yourself) proving so.

“A short can minimize their exposure to the feed by providing enough collateral to keep far above the least collateralized positions, and thus stay very unlikely to be forced to settle at the feed or at an inopportune time.”

[ttutdxh]

I quoted the explanation, I understood you did not agree with the 200%.

Graphene Documentation

It seems that 175% is the minimum now, so >275% collateral into the network to create a single BitUSD. That is the minimum and only covers for a decline in BTS price of -12.5%.

You were right in that it is no longer enforced at 300%, but It does not make any actual difference since you will have to put into the system at least that 300% level so the position is reasonably covered.