Author Topic: What if the market-peg doesn't work?  (Read 8264 times)

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Offline xeroc

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just published a price feed for *.delegate.xeroc

Offline Riverhead


Offline bytemaster

Speaking of which, are delegates supposed to be publishing feeds still or is the market able stand on its own?

Market can stand on its own... if you want to publish feeds for BitBTC then I think that would be helpful because there is more BTC/BTSX liquidity than USD/BTSX... then we can trade BitBTC vs BitUSD on the internal exchange :)
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Offline Riverhead

Speaking of which, are delegates supposed to be publishing feeds still or is the market able stand on its own?

Offline bitmeat

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has anyone declared that the peg works?


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Need more liquidity. All in good times.

bitbro

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has anyone declared that the peg works?


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Offline bitmeat

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Either they unlisted it or the link broke... I am getting LTC / BTC pair from that link. :-/

They reversed it, so it looks like the rest of the world:

https://bter.com/trade/btc_bitusd

Offline robrigo

People just need to put some liquidity behind this:

https://bter.com/trade/bitusd_btc

Either they unlisted it or the link broke... I am getting LTC / BTC pair from that link. :-/

Offline bitmeat

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People just need to put some liquidity behind this:

https://bter.com/trade/bitusd_btc

They just reversed it, correct order is:

https://bter.com/trade/btc_bitusd
« Last Edit: August 26, 2014, 03:55:28 pm by happypatty »

Offline liondani

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If the market-peg doesn't hold the bulls will be not friendly anymore....


Offline CLains

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we can certainly afford some insurance at this stage

Offline betax

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I think this is the best approach, if we have an stable peg of BitUSD, BitGBP, BitEur etc and we can have exchanges of Fiat for BitUsd <-> USD, BitGBP <-> GBP etc as per discussion of using BitPay, we have open the world to crypto.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline yellowecho

I think there is leak with this rule.
when the price of XTS grow up or fall down very fast, the system will lose money.
for example:
when price is 1usd/xts , I can ask  much xts  from  system with price 0.9usd/xts ( system will short to me with unlimited amount)
when price is 0.5usd/xts, I can bid xts from system with price 0.55usd/xts ( system will cover the short)
from this step, I can get much more xts which come from the system printer.

somebody with much money maybe can  control the market  price to attack the whole system.
I have think this again, maybe it's not so easy to attack.
I forget the 1 hour average price is not so easy to move so fast.
seems this is a safety way  :) +5%

Great job , alt!  Very thorough testing  +5%
696c6f766562726f776e696573

Offline alt

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I think there is leak with this rule.
when the price of XTS grow up or fall down very fast, the system will lose money.
for example:
when price is 1usd/xts , I can ask  much xts  from  system with price 0.9usd/xts ( system will short to me with unlimited amount)
when price is 0.5usd/xts, I can bid xts from system with price 0.55usd/xts ( system will cover the short)
from this step, I can get much more xts which come from the system printer.

somebody with much money maybe can  control the market  price to attack the whole system.
I have think this again, maybe it's not so easy to attack.
I forget the 1 hour average price is not so easy to move so fast.
seems this is a safety way  :) +5%

Offline alt

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There are many new people to BTSX that have their doubts about the market peg, and that is OK.  After all it is an economic experiment.   I have high confidence that it will work, but for those with less confidence I would like to present you with our backup plan:

*IF* the market peg doesn't hold well enough (insufficient liquidity, manipulation, etc) then we have a very simple fall back option:

1) The delegates publish a price feed (use the median)
2) All trades must be within X% of the price feed

If there is not enough liquidity it is also possible for the network to "print" BTSX necessary to make great deals relative to a trusted feed.  IE: if BitUSD bids are over 10% above the feed, print BTSX to short BitUSD and if it is under the feed by 10%, cover the short.   Simply knowing there is unlimited sell pressure at 10%+ and a large cover at -10% could also enhance the system.  The benefit of this "system trading" is that the profits from shorting high and covering low go to the shareholders. 

Bottom line, we are going with the most market-based solution first and have fall backs to feed based solutions if they prove necessary.  The fall back solutions remove all of the uncertainty about how trades will be executed in the future (for those who do not trust market pegs yet). 

The time to implement the backup system is less than 1 week if needed.
I think there is leak with this rule.
when the price of XTS grow up or fall down very fast, the system will lose money.
for example:
when price is 1usd/xts , I can ask  much xts  from  system with price 0.9usd/xts ( system will short to me with unlimited amount)
when price is 0.5usd/xts, I can bid xts from system with price 0.55usd/xts ( system will cover the short)
from this step, I can get much more xts which come from the system printer.

somebody with much money maybe can  control the market  price to attack the whole system.