Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: BTER 1% Bonus -- How this affects price feed?  (Read 413 times)

0 Members and 1 Guest are viewing this topic.

Offline fluxer555

  • Hero Member
  • *****
  • Posts: 742
    • View Profile
BTER 1% Bonus -- How this affects price feed?
« on: January 04, 2015, 05:21:11 PM »

The prices on BTER may be inflated because of their 1% deposit bonus / 1% withdrawal fee. Should price feed scripts take this into consideration?

Offline kokojie

  • Sr. Member
  • ****
  • Posts: 286
    • View Profile
  • Witness: kokojie
  • Payrate: 3%
Re: BTER 1% Bonus -- How this affects price feed?
« Reply #1 on: January 06, 2015, 08:58:48 PM »
1% isn't much, plus since they cancel each other out, wouldn't that be just no effects?

Offline Frodo

  • Sr. Member
  • ****
  • Posts: 341
    • View Profile
  • BTS: frodo
Re: BTER 1% Bonus -- How this affects price feed?
« Reply #2 on: January 06, 2015, 09:01:30 PM »
The prices on BTER may be inflated because of their 1% deposit bonus / 1% withdrawal fee. Should price feed scripts take this into consideration?

True BTER BTS is basically worth 1% less than real BTS.
But then again 1% isn't too dramatic at the current point in time.

Offline sschechter

  • Sr. Member
  • ****
  • Posts: 380
    • View Profile
Re: BTER 1% Bonus -- How this affects price feed?
« Reply #3 on: January 06, 2015, 10:12:20 PM »
How does a BTER fee imply that users would value their BTS differently?  I don't believe you that this is true, and therefore I don't believe that feed scripts should consider this. Perhaps a better explanation is needed?
BTSX: sschechter
PTS: PvBUyPrDRkJLVXZfvWjdudRtQgv1Fcy5Qe

Offline toast

Re: BTER 1% Bonus -- How this affects price feed?
« Reply #4 on: January 06, 2015, 10:14:55 PM »
The only effect it has is for people with arbitrage bots - positional traders won't change their strategy. So BTER's lowest ask will be the highest lowest ask over all exchanges. I don't think price feeds should be adjusted.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline Frodo

  • Sr. Member
  • ****
  • Posts: 341
    • View Profile
  • BTS: frodo
Re: BTER 1% Bonus -- How this affects price feed?
« Reply #5 on: January 07, 2015, 01:07:40 PM »
How does a BTER fee imply that users would value their BTS differently?  I don't believe you that this is true, and therefore I don't believe that feed scripts should consider this. Perhaps a better explanation is needed?

Sellers obviously get an 1% advantage selling BTS at BTER, and buyers a 1% disadvantage.
So if a seller has the choice to sell at BTER for a price 0.5% lower than on a different exchange they still choose BTER.
The other way around as a buyer I would rather buy at a different exchange with a 0.5% higher price than at BTER with a 1% fee.
As a result there are less buyers and more sellers than on an exchange without this 1% bonus/fee.


Or a different view on things:

Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)

Offline ffwong

Re: BTER 1% Bonus -- How this affects price feed?
« Reply #6 on: January 07, 2015, 02:11:14 PM »
Quote

Or a different view on things:

Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)

Imagine you deposit 1000 BTS, you get 1010BTS in the book of bter, now you withdraw this 1010 BTS, you only receive 999.9BTS. You loose 0.1BTS.

The 1% deposit gain is not exactly canceled out by 1% withdrawal fee.

Cast me some votes. I am running:
- dragonball for Bitshares 2.0 net
- delegate.fftt for PTS (DPOS) net

Offline Frodo

  • Sr. Member
  • ****
  • Posts: 341
    • View Profile
  • BTS: frodo
Re: BTER 1% Bonus -- How this affects price feed?
« Reply #7 on: January 07, 2015, 02:17:40 PM »
Quote

Or a different view on things:

Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)

Imagine you deposit 1000 BTS, you get 1010BTS in the book of bter, now you withdraw this 1010 BTS, you only receive 999.9BTS. You loose 0.1BTS.

The 1% deposit gain is not exactly canceled out by 1% withdrawal fee.

Well okay, true. But this is 1% of 1%, that should be pretty much negligible.

And besides that makes everything even worse. Because buyers have a 1.01% disadvantage.

 

Google+