Author Topic: Bit20 - The cryptocurrency index fund  (Read 23040 times)

0 Members and 1 Guest are viewing this topic.

Offline EstefanTT

Steemit is by far the brightest social and blockchained-based platform out there. I would suggest anyone to have a look if you still don't know it.

As the blogs look much better and professionals on Steemit platform than forums, from now on, I will post the revisions and other Bit20 announcements there. I'll leave this forum open for questions, debate or any other kind of interactions.

Here is the link to the official Bit20 announcement Steemit channel: https://steemit.com/@EstefanTT

------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------

Noticed that we have opened a telegram channel if you want to be closer to the Bit20 community ;)

Telegran link : https://t.me/joinchat/BdGiiAyHOiLHs4oiHqV2Kg
« Last Edit: October 15, 2017, 04:24:44 pm by EstefanTT »
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline EstefanTT

We've finally managed to understand where the black swan came from. You'll find all the information about it in the Steemit blog we've just posted.

https://steemit.com/bitshares/@EstefanTT/bit20-has-experienced-a-black-swan-what-is-it-what-caused-it-and-what-are-the-consequences

Noticed that we have opened a telegram channel if you want to be closer to the Bit20 community ;)

Telegran link : https://t.me/joinchat/BdGiiAyHOiLHs4oiHqV2Kg

Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline George_Bitspark

  • Full Member
  • ***
  • Posts: 61
  • Co-Founder and CEO of Bitspark
    • View Profile
    • Bitspark
Great thanks for the summary Wackou and EstefanTT, indeed more implementations of the price feed script should be something brought up with other witnesses for other assets aswell.
Bitspark- Cash to Cryptocurrency

Offline EstefanTT

Thanks for the investigation Wackou, so am I correct in saying that if the price feed had more witnesses for this asset and if the price feed is an average of witness feeds, this can help reduce black swans in future? Although such a sharp divergence in feed pricing likely still would black swan the asset even with twice the amount of witnesses correct?

The problem comes from the fact that we only have had 3 witnesses with 2 different version of the script providing the price feed.
It was necessary because we were in the testing phase and we had to make some change since the market inception.

The solution is a system the check the coherence of the new PF with the previous one, more witnesses and different scripts. This is what we will have when the market will be relaunched.
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline EstefanTT

Complete BTS noob here, but can someone provide a link to the net asset value (or current premium) that BTS is trading to the underlying coins? Also, id there a history of this premium available somewhere. Many thanks.




[/center]

All the info you are asking is on the BTWTY : BTS market in the BitShares decentralised exchange.

https://bitshares.openledger.info/?r=estefantt#/market/BTWTY_BTS
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline wackou

Thanks for the investigation Wackou, so am I correct in saying that if the price feed had more witnesses for this asset and if the price feed is an average of witness feeds, this can help reduce black swans in future? Although such a sharp divergence in feed pricing likely still would black swan the asset even with twice the amount of witnesses correct?

that would have helped a bit maybe, yes. What is really needed is more implementations of the feed script. We currently had 3 witnesses publishing the feeds, but using 2 different scripts only (fox has his own, verbaltech and myself use bts_tools). So when my feed started failing, it automatically also failed for verbaltech. If we would have had more witnesses, but running only 2 scripts then maybe we could have noticed the issue earlier (when the first witnesses started to fail) and could have stopped it or started publishing manually before the median went off the rails. That is not a real solution, though, as it could have bought us a bit more time, but it would have happened anyway (as long as more than half of the witnesses are wrong).

But really, I think that what should be done is to have a maximum difference allowed between 2 consecutive feed prices to ensure that the price doesn't shoot up or down due to a bug. If needed (because the market really did go up or down that fast), this can be overriden manually to still publish the feed. I believe that xeroc's script work like that but I haven't implemented it yet myself. It jumped up a few places on my priority list, though...
Please vote for witness wackou! More info at http://digitalgaia.io

Offline BigBurgers

  • Newbie
  • *
  • Posts: 1
    • View Profile
Complete BTS noob here, but can someone provide a link to the net asset value (or current premium) that BTS is trading to the underlying coins? Also, id there a history of this premium available somewhere. Many thanks.



But how exactly is it made, what are the coins in it and how can I invest in it?

I'm here to share with you this promising blockchain project and answer all your questions. 

I wanted to create a tool that allows anyone to invest in the global economic growth of cryptocurrencies without a headache. Just buy something that will track this soon economic Cambrian explosion.
This tool had to be decentralised because we all know how centralised projects dealing with money end up, especially in the cryptocurrency world. So my team and I have created a cryptocurrency index fund (ETF like).

I want to spread the information about this index fund in the crypto community so everyone can invest in a great asset that will grow as the cryptocurrency global market grows. Not something going up and down wildly, but more something like a monster slowly waking up and devouring the fiat money markets.

I want it to be a place where you can store your value with a high probability that months later, you will still have your investment intact and a nice return on investment.

I also want to spread the word out of cryptocurrencies. My plan is to start with the cryptocurrency savvy crowd and then move on to trading forums, forex, stock markets and others. This is how I aim to make new money comes into this space. The bigger the index daily volume will grow, the easier is going to be to promote it and make people interested in crypto.

The index took almost a 2 years to be fully tested and heavily reviewed. It´s finally ready and has been officially launched on the BitShares decentralised exchange on 16/12/2016. The index is fully decentralised and every Bit20 will always be backed by a minimum of 175% of its value.

Here is the evolution of Bit20 ober the last 18 month in $ :



This is 100% secure, 100% decentralised, 100% pure cryptocurrency !

If you have any question, please have a look on the website at the "FAQ"  or "About Bit20" tab. If you don't find what you are looking for, I'll do my best to answer you in this post.





Offline George_Bitspark

  • Full Member
  • ***
  • Posts: 61
  • Co-Founder and CEO of Bitspark
    • View Profile
    • Bitspark
Thanks for the investigation Wackou, so am I correct in saying that if the price feed had more witnesses for this asset and if the price feed is an average of witness feeds, this can help reduce black swans in future? Although such a sharp divergence in feed pricing likely still would black swan the asset even with twice the amount of witnesses correct?

Bitspark- Cash to Cryptocurrency

Offline yvv

  • Hero Member
  • *****
  • Posts: 1186
    • View Profile
Data on www.bittwenty.com was also out of whack for some period.

Offline wackou

so I investigated a bit, but I'm not really sure what caused it yet... if I run it now I get the correct results
given that that coincap returns no result for BCC, VERI, QTUM it is not used, meaning that the data is coming straight from CoinMarketCap only

let's look at the last feeds published for wackou, verbaltech2, fox:

Code: [Select]
wackou

FeedPrice: 1.75457e-06 BTWTY/BTS  569940.2132716278  (2017-07-20T20:59:57+00:00)
FeedPrice: 1.47023e-08 BTWTY/BTS  68016568.8361685  (2017-07-20T20:35:33+00:00)
FeedPrice: 1.47023e-08 BTWTY/BTS  68016568.8361685  (2017-07-20T20:29:27+00:00)
FeedPrice: 1.47023e-08 BTWTY/BTS  68016568.8361685  (2017-07-20T20:23:18+00:00)
FeedPrice: 1.70705e-06 BTWTY/BTS  585805.9224978765  (2017-07-20T20:11:06+00:00)
FeedPrice: 3.39766e-06 BTWTY/BTS  294320.20861416386  (2017-07-20T19:28:27+00:00)
FeedPrice: 3.39766e-06 BTWTY/BTS  294320.20861416386  (2017-07-20T19:16:15+00:00)
FeedPrice: 3.40805e-06 BTWTY/BTS  293422.92513314064  (2017-07-20T18:51:51+00:00)
FeedPrice: 3.40365e-06 BTWTY/BTS  293802.24171110423  (2017-07-20T18:27:27+00:00)
FeedPrice: 3.4317e-06 BTWTY/BTS  291400.7634700003  (2017-07-20T18:03:06+00:00)

Code: [Select]
verbaltech2

FeedPrice: 1.75844e-06 BTWTY/BTS  568685.8806669548  (2017-07-20T21:00:12+00:00)
FeedPrice: 3.38361e-06 BTWTY/BTS  295542.3349617716  (2017-07-20T20:04:54+00:00)
FeedPrice: 3.38991e-06 BTWTY/BTS  294993.0824122174  (2017-07-20T20:00:36+00:00)
FeedPrice: 3.40312e-06 BTWTY/BTS  293847.99830743554  (2017-07-20T19:05:18+00:00)
FeedPrice: 3.4082e-06 BTWTY/BTS  293410.0111495804  (2017-07-20T19:03:33+00:00)
FeedPrice: 3.43005e-06 BTWTY/BTS  291540.93963644846  (2017-07-20T18:03:42+00:00)
FeedPrice: 3.4321e-06 BTWTY/BTS  291366.8016666181  (2017-07-20T18:02:18+00:00)

Code: [Select]
fox

FeedPrice: 3.3770663424682977e-06 BTWTY/BTS  296115.0  (2017-07-20T19:51:39+00:00)
FeedPrice: 3.397962581636051e-06 BTWTY/BTS  294294.0  (2017-07-20T15:51:06+00:00)
FeedPrice: 3.3295376604004766e-06 BTWTY/BTS  300342.0  (2017-07-20T11:50:33+00:00)
FeedPrice: 3.362994948781587e-06 BTWTY/BTS  297354.0  (2017-07-19T21:13:06+00:00)
FeedPrice: 3.422653172286093e-06 BTWTY/BTS  292171.0  (2017-07-19T17:12:27+00:00)
FeedPrice: 3.470342453393301e-06 BTWTY/BTS  288156.0  (2017-07-19T13:11:51+00:00)

so on 2017-07-20, up until 20:10 every is fine, and then at 20:11 I start publishing a feed price that is slashed in half
at 21:00 verbaltech2 publishes his next feed and his price is also affected

at this point, this triggers the black swan and no one can publish feeds anymore. Fox not having published a feed since 20:11, we don't know if his code would have been affected too or not. Given that the script currently returns the correct feed price for me, I am tempted to say that this was a temporary glitch in the CMC api. I don't have debug logs from then, and the historical data on CMC looks clean, so there's no way for me to confirm this hypothesis either...

I don't think I'm going to spend more time trying to figure out what happened, but rather think about what can be done to avoid this type of situations in the future.

There are 2 areas I want to improve:
- there should be a check that the feed value is consistent with the previously published value. If not, user should be notified, and feed should not be published unless overriden manually (via the config.yaml file)
- we should keep historical data of all queries to external sources and persist it in a local db. This would allow to have a much better traceability with respect to feed queries and publishing.

Let's hope that pc manages to get BSIP-018 finalized quickly so that we can reboot the BTWTY market!
Please vote for witness wackou! More info at http://digitalgaia.io


Offline EstefanTT

Bit20 - The cryptocurrency index fund [2017/07/21 - revision]



On the 21st day of every month, Bit20 runs an algorithm that creates its new composition. By this process, it always includes the most promising coins. Some coins appear in the index and others disappear. Some of them gain weight and other lose some of it. This new composition swap with the previous one without any disturbance of the index price.

We have run this operation yesterday. Here is the new composition of the Bit20 Index Fund:

BTC / 45802864660 USD / 10 % / 1.3729080571151 coins / 2782.75 USD
ETH / 21004746485 USD / 10 % / 16.993825805106 coins / 224.814585 USD
LTC / 2329412021 USD / 10 % / 85.431272535297 coins / 44.7196885 USD
ETC / 1488458592 USD / 10 % / 240.6244783362 coins / 15.87727035235 USD
DASH / 1386652697 USD / 9.6908906808352 % / 19.860450223695 coins / 186.419032726 USD
XEM / 1372267347 USD / 9.590355878893 % / 24030.020904655 coins / 0.1524741496 USD
MIOTA / 806183302 USD / 5.6341679970041 % / 7421.3523096666 coins / 0.290043 USD
XMR / 600317850 USD / 4.1954374521395 % / 39.545834399725 coins / 40.5314511 USD
STRAT / 512680669 USD / 3.5829680555235 % / 262.91802219672 coins / 5.2064083132 USD
BCC / 419175256 USD / 2.9294873841125 % / 16.090153636757 coins / 69.558 USD
VERI / 409717046 USD / 2.8633868534283 % / 5.2585441855467 coins / 208.032 USD
QTUM / 407485920 USD / 2.8477941976697 % / 136.17011840017 coins / 7.98992 USD
EOS / 400728396 USD / 2.8005679336608 % / 615.10047493905 coins / 1.739465 USD
ZEC / 371173836 USD / 2.5940201724948 % / 4.7612325628377 coins / 208.146733172 USD
ANS / 367054750 USD / 2.5652331429687 % / 133.5001160786 coins / 7.341095 USD
BTS / 353766437 USD / 2.4723651963701 % / 6934.062861147 coins / 0.1362198796 USD
STEEM / 326337322 USD / 2.2806715188457 % / 634.87244499065 coins / 1.37243538325 USD
WAVES / 321447500 USD / 2.2464980516515 % / 267.00023215721 coins / 3.214475 USD
ICN / 267928500 USD / 1.8724701645896 % / 267.00023215721 coins / 2.679285 USD
BCN / 262378844 USD / 1.8336853198129 % / 489017.8276222 coins / 0.0014325697 USD

The composition is sent in the BitShares Blockchain so the witnesses can read it and publish the price in the decentralised exchange. This system guarantees decentralisation and prevent any market manipulation. Here it is:
http://cryptofresh.com/u/bittwenty.feed

You will find on the website the composition with the updated price of each coin and the total value of the index



Next, a glance at the state of the market since its creation on the BitShares Decentralised Exchange



Stop hesitating and start trading on the Bit20 market !!!





Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline EstefanTT

Bit20 index is currently screwed by wrong data:

Quote
XEM   Quantity: 24030.020904655;   Price in USD: 186.419032726;   Value in USD: 4479653.2534313

The price feed is currently wrong and  this caused a bunch of margin calls.

The problem seems to have come from 2 witnesses. They have published a price feed twice as big as the previous ones causing not only margin calls but a black swan event.
I will contact them and try to understand what happened.

Luckily, if I'm not wrong, a worker proposal has just been voted in to reactivate markets having suffered a black swan.
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline EstefanTT

@EstefanTT

It is unfortunate that btsbots provide incorrect price feed for bit20. This makes the use of bot for bit20 very difficult. If you could collaborate with @alt to help him fix this, running bot on bit20 would be sweet.

I will contact him
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline yvv

  • Hero Member
  • *****
  • Posts: 1186
    • View Profile
Bit20 index is currently screwed by wrong data:

Quote
XEM   Quantity: 24030.020904655;   Price in USD: 186.419032726;   Value in USD: 4479653.2534313

The price feed is currently wrong and  this caused a bunch of margin calls.