Its a chicken and egg problem with all mayoe exchanges. .. we need them to trade bts for price discorvery yet we dont like them to store alot of bts for security reasons
We don't need centralized exchanges for price discovery. We could use bitcoin gateways instead. Then price discovery (and purchasing BTS directly with "bitcoins") is possible on our decentralized exchange. No counterparty risk for the BTS being traded (just the "bitcoins") and more importantly voting rights are kept in the hands of the stake owners and not the exchanges.
This is how I hope we do price discovery for DVS. We just need julian1 and/or monsterer to set up GATEBTC for DevShares.
Also, I would love it if we could have a BitShares Standard Gateway for ECDSA coins to further reduce the counterparty risk.
It's an interesting idea. One thing that's kept me from developing the btcgateway/xchain.info further is that I don't want to be the counterparty responsible for holding people's Bitcoin and Litecoin etc. And that applies irrespective of the fact that I believe I have a good sys-admin background to properly lock down servers.
The null-street marketers keep saying we need to tap Bitcoin evangelism for our common interest with a shared-wallet. Another viable approach would be to have multi-sig/shamir's secret backed redeemable BTC/LTC 'upgrade' assets on our own fast blockchain. Bitshares can then be pitched as a Bitcoin 'side-chain' for the marketing network-effect.
Gateway assets make this much easier. In fact, maybe we should just skip GATEBTC and go for a GATEBITUSD UIA on DevShares backed by BitUSD locked on the BitShares blockchain by the counterparty.
I could do this.
Would there be interest in delegate sponsorship for something like this? I'm currently paying rent on multiple servers, and have already sunk about two months of development labor into GATEBTC (Still trying to make up the overtime/leave on my day job). I'm prepared to open-source, and can dramatically streamline the user-experience in terms of eliminating the need to expose private-keys.