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Yield question

Started by monsterer, December 06, 2014, 07:58:17 PM

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monsterer

Quote from: islandking on December 06, 2014, 11:22:34 PM
Quote from: monsterer on December 06, 2014, 11:04:44 PM
Quote from: islandking on December 06, 2014, 11:04:13 PM
Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?

The yield comes from the short position I think. So you would not make any money at all doing this.

Read the OP :)
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islandking

Quote from: monsterer on December 06, 2014, 11:04:44 PM
Quote from: islandking on December 06, 2014, 11:04:13 PM
Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?

The yield comes from the short position I think. So you would not make any money at all doing this.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

starspirit

Quote from: monsterer on December 06, 2014, 11:02:46 PM
Quote from: bytemaster on December 06, 2014, 08:29:46 PM
All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?
The short has to compete on interest, so to guarantee getting set there could be a net cost.

monsterer

Quote from: islandking on December 06, 2014, 11:04:13 PM
Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?
My opinions do not represent those of metaexchange unless explicitly stated.
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islandking

Quote from: monsterer on December 06, 2014, 11:02:46 PM
Quote from: bytemaster on December 06, 2014, 08:29:46 PM
All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?

Nothing, but you would not gain anything from that. Its like going long and short. 0% change.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

monsterer

Quote from: bytemaster on December 06, 2014, 08:29:46 PM
All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?
My opinions do not represent those of metaexchange unless explicitly stated.
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biophil

Quote from: monsterer on December 06, 2014, 07:58:17 PM
Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?

The interest is paid when the short covers, and it just gets put into the pool that all other bitAsset fees go into.
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bytemaster

Quote from: monsterer on December 06, 2014, 07:58:17 PM
Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?

All interest paid by all shorts is shared by all USD equally.
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monsterer

Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?
My opinions do not represent those of metaexchange unless explicitly stated.
[url="https://metaexchange.info"]https://metaexchange.info[/url] | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads