suggest to disable forcesettlement for bitCNY

Started by bitcrab, November 06, 2018, 10:12:29 AM

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xeroc

Quote from: bitcrab on November 06, 2018, 01:50:20 PM
I own a debt position with CR=3, now you force me to sell the collateral to you with a under market price, this is not exploiting, are you joking?
Well, that is a consequence of BSIP42 and not of settlements per se.
Multiple solutions to that have been proposed already among which are:
- let the price feed reflect the actual pricing again and do negative feedback through MCR
- introduce a distinct price for settlements (though I believe that would allow exploting BSIP42)

The proposal to remove one of the strongest reasons for bitassets to have a "floor"-price isn't easy for me to understand.

Thul3

#9
Quote from: bitcrab on November 06, 2018, 01:48:07 PM
Quote from: Thul3 on November 06, 2018, 11:26:52 AM
You are turning a free market into a centrally planned economy

what you called free market is a forrest where beasts can kill and eat people.

the real free market is a common infrastructure, it need careful design and will evolve with consensus.

Consensus of what ?The people or the few proxies acting like central banks?
You make no announcements,no clear rules no borders no nothing and we the majority of traders are forced to accept it ?
Also is it just me or is the trading volume on DEX decreasing quickly and pushed down from its trone ?

binggo

Quote from: bitcrab on November 06, 2018, 01:50:20 PM
Quote from: sschiessl on November 06, 2018, 10:32:34 AM
Chance for speculator to exploit debt position owners is implicit arbitrage and will be healthy for the market. How can it be exploited? The Force Settlement Offset is 5%, which should make it hard enough. Please elaborate

Force settlement is a feature that must remain available IMO, it is a worst-case scenario measure. It will certainly never be used in a liquid market, the UI prominently shows the user if the market is the better choice.
But if there is any incident that the market crashes, the force settlement option must be available and I would not want to wait for anyone to activate it then.

I own a debt position with CR=3, now you force me to sell the collateral to you with a under market price, this is not exploiting, are you joking?

what cause this?

bitcrab

Quote from: sschiessl on November 06, 2018, 10:32:34 AM
Chance for speculator to exploit debt position owners is implicit arbitrage and will be healthy for the market. How can it be exploited? The Force Settlement Offset is 5%, which should make it hard enough. Please elaborate

Force settlement is a feature that must remain available IMO, it is a worst-case scenario measure. It will certainly never be used in a liquid market, the UI prominently shows the user if the market is the better choice.
But if there is any incident that the market crashes, the force settlement option must be available and I would not want to wait for anyone to activate it then.

I own a debt position with CR=3, now you force me to sell the collateral to you with a under market price, this is not exploiting, are you joking?


bitcrab

Quote from: Thul3 on November 06, 2018, 11:26:52 AM
You are turning a free market into a centrally planned economy

what you called free market is a forrest where beasts can kill and eat people.

the real free market is a common infrastructure, it need careful design and will evolve with consensus.

R

#5
No way. I'd far rather see a global settlement take place than for force settlement to be disabled. If I'm unable to claim the backing collateral directly, then there might as well be no backing collateral (fiat's worst practice).

I'd far rather see these permissions/flags entirely surrendered preventing any such proposal. Funnily enough though, I'm unable to do so within the UI at this time: https://github.com/bitshares/bitshares-ui/issues/2043

Thul3

You are turning a free market into a centrally planned economy

binggo

#3
I suggest to choose the highest price as the last feed price  from the CEX price and the dynamically feed price.

If use the highest price as the last feed price, we can keep the forcesettlement and the dynamically feed price.

and the market may still be a free market possible.

https://bitsharestalk.org/index.php?topic=27357.0


sschiessl

Chance for speculator to exploit debt position owners is implicit arbitrage and will be healthy for the market. How can it be exploited? The Force Settlement Offset is 5%, which should make it hard enough. Please elaborate

Force settlement is a feature that must remain available IMO, it is a worst-case scenario measure. It will certainly never be used in a liquid market, the UI prominently shows the user if the market is the better choice.
But if there is any incident that the market crashes, the force settlement option must be available and I would not want to wait for anyone to activate it then.

bitcrab

at this moment the settlement price is lower than latest price in bitCNY market. which means the debt positions are in risk to be force sold in a under market price.



it is not acceptable.

bitCNY is in good liquidity, if bitCNY want to convert bitCNY to BTS he can just trade in the market, here the force settlement here is not necessary but sometimes provide chance for speculator to exploit debt position owners.

I suggest to disable force settlement for bitCNY.

kindly let me know your opinion.