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Offline gamey

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Why is bitUSD so underpriced at the moment?
« on: October 29, 2014, 06:22:25 PM »



Can anyone explain why bitUSD is so far off the peg?  Is it something to do with the needs of the short/long positions?
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Online Shentist

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Re: Why is bitUSD so underpriced at the moment?
« Reply #1 on: October 29, 2014, 06:24:20 PM »
it's easy, everyone is just talking and not buying and selling. just buy the bitUSD to the peg, but you see for yourself, most of the time no one is doing it. 250k in bitUSD is to much for myself :D

Offline gamey

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Re: Why is bitUSD so underpriced at the moment?
« Reply #2 on: October 29, 2014, 06:32:16 PM »


I thought liquidity bots were running that would keep it closer to the peg ?    Where is my thinking wrong ?  Liquidity bots stopped being profitable because bitusd has been going down consistently, so they were turned off ?
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Offline biophil

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Re: Why is bitUSD so underpriced at the moment?
« Reply #3 on: October 29, 2014, 06:33:34 PM »


Can anyone explain why bitUSD is so far off the peg?  Is it something to do with the needs of the short/long positions?

People are waiting to see if we get a correction back down below 45. If it stays at 48 for a couple days, the peg should correct. Yesterday the peg was rock solid, then the feeds changed, and now it's off.

Online Shentist

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Re: Why is bitUSD so underpriced at the moment?
« Reply #4 on: October 29, 2014, 06:35:15 PM »


I thought liquidity bots were running that would keep it closer to the peg ?    Where is my thinking wrong ?  Liquidity bots stopped being profitable because bitusd has been going down consistently, so they were turned off ?

i don't think someone runs liquidity bots for over 250k.

Offline gamey

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Re: Why is bitUSD so underpriced at the moment?
« Reply #5 on: October 29, 2014, 06:49:59 PM »


I thought liquidity bots were running that would keep it closer to the peg ?    Where is my thinking wrong ?  Liquidity bots stopped being profitable because bitusd has been going down consistently, so they were turned off ?

i don't think someone runs liquidity bots for over 250k.

Well I was meaning that I thought people were actively doing this, but I wasn't saying the market looked like it.  So if the liquidity bots are not running, is it because the steady downtrend lately has made them have a negative return ?

I finally got a 2nd windows machine so I finally have a working wallet that stays up and running. (Windows 8 > Windows 7 in this instance)  So I've just started playing with the trading system and trying to really wrap my head around what all is going on.
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Online Shentist

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Re: Why is bitUSD so underpriced at the moment?
« Reply #6 on: October 29, 2014, 07:03:50 PM »
i would not run a bot right now. to much selling pressure. i like to decide by myself and try to trade every day a little bit, to build a liquid market. if eyeryone is doing it we should be fine.

It would be helpful to get some purpose for bitUSD

- to buy .p2p domains for bitUSD will help
- pay bountys in bitUSD or bitCNY etc.

we should think to transfer as many fees as possible to be paid in bitUSD and not in BTSX or BTS in the future. i support to make more "applications" to use bitUSD as payment.

Offline bytemaster

Re: Why is bitUSD so underpriced at the moment?
« Reply #7 on: October 29, 2014, 07:08:31 PM »
Just wait... the first shorts are approaching expiration next week at which point in time we should start seeing a steady supply of bids attempting to buy BitUSD cheap that get closer and closer to the peg as their expiration approaches.
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busygin

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Re: Why is bitUSD so underpriced at the moment?
« Reply #8 on: October 29, 2014, 08:10:59 PM »
The sell bitUSD wall @ 45.0230 is being eaten slowly but steadily. There are two more behind it. They can be eaten in a few days if BTSX downtrend continues (that seems likely provided the weak bitcoin market and the fact that our next marketing push is still some time away from now).

Offline tonyk

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Re: Why is bitUSD so underpriced at the moment?
« Reply #9 on: October 29, 2014, 08:42:42 PM »
No bots presently running AFAIKT...

As to the main question...I will pay good money to the one who tells me.


[2 posts to go]
« Last Edit: October 29, 2014, 08:46:56 PM by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Riverhead

Re: Why is bitUSD so underpriced at the moment?
« Reply #10 on: October 29, 2014, 09:01:55 PM »
How will bitUSD play into DevShares? Will they be brought over with the snapshot or just PTS/AGS/BTSX?

zerosum

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Re: Why is bitUSD so underpriced at the moment?
« Reply #11 on: October 29, 2014, 09:22:49 PM »
How will bitUSD play into DevShares? Will they be brought over with the snapshot or just PTS/AGS/BTSX?

Now, that is a good question!

Offline robrigo

Re: Why is bitUSD so underpriced at the moment?
« Reply #12 on: October 29, 2014, 10:08:31 PM »
How will bitUSD play into DevShares? Will they be brought over with the snapshot or just PTS/AGS/BTSX?

I'm also curious if BTSX in open market orders (short collateral) will be included in the snapshot.

busygin

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Re: Why is bitUSD so underpriced at the moment?
« Reply #13 on: October 29, 2014, 10:14:59 PM »
Most of the sell wall has been moved to the price feed value, just about 30K bitUSD is left to buy cheap  ;)

Offline gamey

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Re: Why is bitUSD so underpriced at the moment?
« Reply #14 on: October 30, 2014, 07:09:55 PM »
I went allin yesterday on bitUSD because of the price difference and other thoughts.  Today was a good day for me. 

So.... what is the console command to figure out the short expiration times and thus when I can expect closer parity in bitUSD price ?
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