Author Topic: Short Order Refactoring  (Read 13224 times)

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Offline Erlich Bachman

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I like it.  Especially if it helps BitShares run more efficiently.  And since shorting is all about managing collateral anyway now (BTS2.0), then conceptually, nothing has actually changed.

All I need to do to short a smart coin is borrow some then sell it on the market.

You make the shorting process a 2 step process, which is what it is supposed to be in real life, however, with the advent of Naked Shorting, nobody sources the actual security anymore.  This brings us all back to the Austrian Economic roots of non-fractional reserve securities trade.

Basic, simple, elegant, intuitive, easy to comprehend, and easier to teach. 
« Last Edit: June 16, 2015, 03:28:53 pm by Erlich Bachman »
You own the network, but who pays for development?

Offline bytemaster

Under BitAssets 2.0 all that matters is that you maintain sufficient collateral.  Initial collateral is effectively meaningless.   Users could at any time short to themselves and then manually reduce their collateral.   

In the interest of simplifying the protocol and the user experience I propose the following:

1. Get rid of "short orders" entirely
2. Allow users to borrow any amount of BitUSD by locking up collateral.
3. Margin call the positions like always
4. Users can adjust their debt and collateral at any time provided the ratio between the two is sufficient.

To "short" you would first borrow the BitUSD and then place a standard limit order.   

This would greatly simplify all market operations and history and result in fewer potential bugs. 

I wanted to run the concept by everyone before committing to the approach.
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.