Author Topic: Stablecoins are only pegged on one side. They cost more than the feed price.  (Read 4885 times)

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Offline fractalnode

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(...) I mean why would you want to pay 1.1 BTC to buy 1 BitBTC or $1.10 to buy 1 BitUSD?
because bitBTC (and other MPA) is counterparty risk free, and OPEN.BTC is not.

Offline mf-tzo

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definitely!! I remember talking a couple of years ago to a colleague who wanted some bitcny and then when we checked the premium he had to pay (which was like 5% not even 10%-20% like in btc) he was laughing and ofcourse didn't proceed..Any attempts to convince him that bitassets are superior to fiat, more secure in terms of storage, he is his own bank, no counterparty risk, no capital controls etc etc where fruitless..

Offline yvv

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Our BitAssets are successful in making sure the value never drops below the price feed that the asset tracks. (This is because anyone can force settle BitAssets for BTS if there are no willing buyers)

In fact, the value of bitAssets drop below the price feed quite often. But yes, you can force settle them (with delay, offset and volume limit), so it is easy to correct the price when it drops below the feed.

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If we want people to use BitAssets surely we need to fix this.

Exactly! And to fix this, we need to fix margin trading mechanics, which is awkward in BTS. Then, all those margin traders will hopefully come from other exchanges and issue a hell of bitAssets on us.


Offline JonnyB

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Our stablecoins/MPAs/BitAssets cost more than they should do.

The purpose of a stablecoin like BitUSD should be to track the price of USD.
Our BitAssets are successful in making sure the value never drops below the price feed that the asset tracks. (This is because anyone can force settle BitAssets for BTS if there are no willing buyers)

But there is no mechanism to stop the peg drifting above the feed price.

Most BitAssets are constantly trading at a premium to the asset they track and sometimes this premium is up to 20%.

If we want people to use BitAssets surely we need to fix this. I mean why would you want to pay 1.1 BTC to buy 1 BitBTC or $1.10 to buy 1 BitUSD?

I run the @bitshares twitter handle
twitter.com/bitshares