Poll

A Blockchain Industry Tracking Financial Vehicle (Exchange Traded Fund, Index Funds)

Should operate seperate from distributed exchange DACs
1 (33.3%)
Should be core to the Bitshares ecosystem
1 (33.3%)
Industry is too nascent and most blockchain assets and tokens are scams
1 (33.3%)

Total Members Voted: 3

Voting closed: April 11, 2016, 07:33:47 PM

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Offline jcrubino

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[Proposal] Coin indices: Exchange Traded Cryptocoin Indices
« on: April 12, 2015, 06:02:18 AM »

Crypto coin and asset Indices:  Tradeable Indices without market and managerial risk

Value Proposition:
    Treating Blockchain as DACs creates a reference point to treat BTA and networks as an industry.
    Blockchain Industry following indexes should be built on industry tools and systems
    Bitshares provides the most advanced distributed exchange and application specific ledger to lead this type of operation.
    Bitshares becomes more relevant inside the blockchain technology ecosystem
    Bitshares provides assets and tools relevant to those who want to safely increase their blockchain finance usage
    An index fund and exchange traded fund are among the tools of modern finance that Bitshares can operate to increase utility among the block chain technologist and believers.
    External exchanges are still needed for market price discovery and liquidity
    Industry tracking investment vehicles could increase awareness among mainstream non-adopters of blockchain technology as a fair risk asset better suited to personal style and risk profile.


External Same or Similar Assets:
    Already on the Market
        Coindex.eu (nxt)   
    Proposed Projects:
        Altcoin25     (nxt)

Bitshares Competitive Advantage:
     Bitshares has "contract for difference"  (CFD) smart contract abilities which is the foundation for bitAssets.
     Using CFD market mechanics long and short positions that track the value of the underlying asset without user risk to managerial fraud or mistakes and market liquidity squeezes.  Users can hold or short and asset that tracks the fair trade value of the underlying assets.
    Bitshares also has very fast block times providing for near trade time exchanges of value that most other blockchains cannot provide.

Potential Competitors:
    Ethereum project provides CFD capabilities and will be open for any user to create CFD contracts at will.


Proposed Asset Lines:

    Marketcap Traditional Index 
        suffix: MTI
        Traditional Marketcap Weighted Indices

    Marketcap Broad Index
       suffix: MBI
        Weight limited market cap based index to provide broader exposure to the over all market
   
    Volume Cap Index
        suffix: VCI       
        High Marketcap Low Trade Volume

    Equal Weighted Index
        suffix: EWI

    Price Weighted Index
        suffix: PWI

    Sector Specific Assets:
        Strong Privacy
        Distributed Apps
       

The above asset line provides most of  the major traditional methods for index composition and allows for varying levels of exposure to the current markets.

To make this easier for delegate participation reference python libraries to pull data from data aggregators and exchanges will be provided.


Updated Regularly to Reflect Current Status of Proposal.
« Last Edit: April 21, 2015, 01:01:15 AM by jcrubino »

Offline monsterer

Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #1 on: April 13, 2015, 09:41:32 AM »
Your proposal idea is sound, but your proposed implementation is massively overcomplicated.

The simple route is to just create a pegged asset for the fund, then create a pull request on the feed scripts which actually values the index. Then convince people this is worth including and it will just happen.
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Offline xeroc

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #2 on: April 13, 2015, 10:47:29 AM »
The simple route is to just create a pegged asset for the fund, then create a pull request on the feed scripts which actually values the index... and convince at least 51 delegates to publish the corresponding prices. Then convince people this is worth including and it will just happen.
:P
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Offline monsterer

Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #3 on: April 13, 2015, 10:55:10 AM »
The simple route is to just create a pegged asset for the fund, then create a pull request on the feed scripts which actually values the index... and convince at least 51 delegates to publish the corresponding prices. Then convince people this is worth including and it will just happen.
:P

IMO make it easy for them and they wont have a problem as long as they like the idea.

Merged pull requests on the common feed scripts is all you really need.
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Offline xeroc

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #4 on: April 13, 2015, 11:05:11 AM »
IMO make it easy for them and they wont have a problem as long as they like the idea.

Merged pull requests on the common feed scripts is all you really need.
I would like to agree .. but I don't know how often people are "updating" their feed scripts .. also some delegates still don't publish feeds at all .. (old story)
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Offline jcrubino

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #5 on: April 13, 2015, 07:40:23 PM »
Your proposal idea is sound, but your proposed implementation is massively overcomplicated.

The simple route is to just create a pegged asset for the fund, then create a pull request on the feed scripts which actually values the index. Then convince people this is worth including and it will just happen.

I agree a pegged asset is the best solution.
Not having to worry about liquidity frees up the implementation enough to allow for volatility controlled assets.

Will create pull requests within the week.

JR


Offline jcrubino

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #6 on: April 14, 2015, 01:45:43 AM »
I would like to agree .. but I don't know how often people are "updating" their feed scripts .. also some delegates still don't publish feeds at all .. (old story)

Where can I read about the preferred or official feed format and the technical details of pegged asset implementation?
Would a comprehensive market data collector be advantageous to the community?

Offline xeroc

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #7 on: April 14, 2015, 05:52:19 AM »
Where can I read about the preferred or official feed format and the technical details of pegged asset implementation?
http://wiki.bitshares.org/index.php/Delegate/Feeds
http://wiki.bitshares.org/index.php/Market_Peg
http://wiki.bitshares.org/index.php/BitShares/Short

Keep in mind that those wiki articles might be a little out of sync.

Quote
Would a comprehensive market data collector be advantageous to the community?
Market data nicely plotting price movements and markets of the internal exchange .. hell yes ..

Market data collector from external exchanges to have a central spot for price feeds  .. absolutely not ..
price fees should be very custom made from delegate to delegate ..
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Offline jcrubino

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Re: [Proposal] Coindices: Exchange Traded Cryptocoin Indices
« Reply #8 on: April 14, 2015, 06:55:11 AM »
I would like to agree .. but I don't know how often people are "updating" their feed scripts .. also some delegates still don't publish feeds at all .. (old story)

Can the common feed be versioned and a running delegate gets the hash for delegate profile publication.
Helps keep the delegates up to date

Offline jcrubino

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Re: [Proposal] Coin indices: Exchange Traded Cryptocoin Indices
« Reply #9 on: April 22, 2015, 10:00:56 AM »
Reference data client for Coinmarketcap.com using Coinmarketcap + a Kimono API that updates every 15 min
https://gist.github.com/jcrubino/acb6299bc3d1a08858a3

Coingekko comming soon



« Last Edit: April 22, 2015, 09:10:16 PM by jcrubino »

Offline monsterer

Re: [Proposal] Coin indices: Exchange Traded Cryptocoin Indices
« Reply #10 on: April 23, 2015, 07:11:22 AM »
Reference data client for Coinmarketcap.com using Coinmarketcap + a Kimono API that updates every 15 min
https://gist.github.com/jcrubino/acb6299bc3d1a08858a3

Coingekko comming soon

Good work! How do you intend to calculate the rankings - coin market cap / total market cap?
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Offline jcrubino

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Re: [Proposal] Coin indices: Exchange Traded Cryptocoin Indices
« Reply #11 on: April 23, 2015, 08:05:11 AM »
I am glad you asked because its tormenting....

Lots of options but unreasonable to ask delegates to post a feed for each...

Strict Market Cap but less Exposure to alt assets or capped weighted market caps to even exposure?
Price Weighted but bitcoin still outpowers the rest?
Drop Bitcoin all togeather or keep Bitcoin in as collateral against mongering?
Short Bitcoin, creating a long short type of index?
This could be very interesting...

I think price weighted is warranted but a capped market caps provide better exposure.
Up to the community to decide, if Privatized Assets do not go through.
(If privatized assets do go through, could the yield be kept by Bitshares as an underwriter fee?)

How does the Bitshares community want to represent the industry markets in an index?
Should we engage industry and exchanges for feedback on this?
Is there a way to incentivize other blockchains to support an index on Bitshares?

I heard that producing new altcoins was like giving fireworks or dynamite to kids, my hope is the index is at least like handing out ice cream on a hot day.
« Last Edit: April 23, 2015, 08:53:42 AM by jcrubino »

Offline jcrubino

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Re: [Proposal] Coin indices: Exchange Traded Cryptocoin Indices
« Reply #12 on: April 23, 2015, 10:08:27 AM »
On a tangential note, I was invited to speak at the Prague Bitcoin conference.
I declined as its a one day event and I had no plans to be in Prague or Europe for that matter.

Any Euro Bitshares members plan on attending and interested in pitching Bitshares and the index?

 

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