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Offline bytemaster

BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« on: September 07, 2014, 07:03:42 PM »

BitAssets will now yield a return for their owners from the transaction and market fees involving that asset.   This is a variable yield and not a guaranteed ROI.

Users will not have to do anything to benefit from this yield, it will automatically show up in their balance and transaction records as part of normal use.   Every time you make a transaction that withdraws from one of your balances it will pay any yield due back to that balance.     

The yield can be calculated as:

ACCOUNT_BALANCE / BIT_ASSET_SUPPLY  *  TOTAL_ACCUMULATED_FEES * PERCENT_OF_YEAR_HELD

After 1 year you hit the maximum yield percent.  Simply move your funds once per year and you can see the maximum benefit.

You can estimate the "current APR" as  TOTAL_ACCUMULATED_FEES / BIT_ASSET_SUPPLY.

The following things can reduce the current yield estimate:
   New BitUSD being created with a market fee less than  (TOTAL_ACCUMULATED_FEES / BIT_ASSET_SUPPLY)
   Someone cashing out some of their yield.

The following things can increase the current yield estimate:
   Market Transactions with more overlap than (TOTAL_ACCUMULATED_FEES / BIT_ASSET_SUPPLY)
   Transactions with BitUSD fees paid.


So what kind of yield can one expect to see?   $0.05 per transaction, 0.01% or more BitUSD trade volume.  Up to 10% on new BitUSD issuance based upon existing demand.. perhaps less.

Assume we get to 1 TPS in BitUSD the network would earn $1.5 million from transaction fees, if there were $15M BitUSD in circulation then that would be a 10% yield.   Every time someone submits / cancels a bid with BitUSD it counts as a transaction.    $15M BitUSD in circulation would mean $30M BTSX locked up as collateral.     

This will get very interesting :)
For the latest updates checkout my blog: http://bytemaster.bitshares.org
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.

Online Shentist

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #1 on: September 07, 2014, 07:12:19 PM »
 +5%

maybe you can explain more "PERCENT_OF_YEAR_HELD"?

for me it is unclear, how this is calculated. you wrote

Quote
Simply move your funds once per year and you can see the maximum benefit.

so transfering from my account to my account don't count as transfer.

do i have to hold the bitUSD as shown in my account or is it possible to place the bitUSD as an order in the market and it is still counted to the yield?

Offline bytemaster

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #2 on: September 07, 2014, 07:14:36 PM »
+5%

maybe you can explain more "PERCENT_OF_YEAR_HELD"?

for me it is unclear, how this is calculated. you wrote

Quote
Simply move your funds once per year and you can see the maximum benefit.

so transfering from my account to my account don't count as transfer.

do i have to hold the bitUSD as shown in my account or is it possible to place the bitUSD as an order in the market and it is still counted to the yield?

Market orders to not pay a yield at this time.

PERCENT_OF_YEAR_HELD  =  seconds since the last withdraw/deposit / seconds per year.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
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.

Offline serejandmyself

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #3 on: September 07, 2014, 07:16:27 PM »
will be interesting
btsx - bitsharesrussia

Ggozzo

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #4 on: September 07, 2014, 07:17:28 PM »
Is the interest paid in BTSX or bitUSD?

Offline emski

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #5 on: September 07, 2014, 07:18:25 PM »
So if you own BTSX it is wise to short USD to yourself so you can profit ?

Offline Riverhead

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #6 on: September 07, 2014, 07:19:37 PM »

PERCENT_OF_YEAR_HELD  =  seconds since the last withdraw/deposit / seconds per year.


I may take Wednesday off work to properly focus on this :D .


So if I send my bitUSD balance to myself does that count as a movement that can collect the yield? Would that reset the clock on the "percentage of year" timer? If it does are bitAssets subject to the 5% inactivity fee?

Offline Riverhead

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #7 on: September 07, 2014, 07:21:07 PM »
So if you own BTSX it is wise to short USD to yourself so you can profit ?


Why not just buy bitUSD on the open market so your BTSX isn't held up?

Offline bytemaster

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #8 on: September 07, 2014, 07:21:22 PM »
So if you own BTSX it is be wise to short USD to yourself so you can profit ?

Before you can "Short USD to yourself" you must buy up all USD on the market below the price feed... then you must offer to pay a higher market fee than all the other people attempting to short.       

If everyone does this then the PEG will hold *AND* BitUSD will have a high yield.  The result will be that BTSX will go up in value and you will make a killing. 
For the latest updates checkout my blog: http://bytemaster.bitshares.org
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.

Offline bytemaster

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #9 on: September 07, 2014, 07:22:28 PM »
So if you own BTSX it is wise to short USD to yourself so you can profit ?


Why not just buy bitUSD on the open market so your BTSX isn't held up?

Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time. 
For the latest updates checkout my blog: http://bytemaster.bitshares.org
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.

Offline D4vegee

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #10 on: September 07, 2014, 07:24:38 PM »
This is good. How long till i no longer need my Santander account?!


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Offline Gentso1

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #11 on: September 07, 2014, 07:45:51 PM »
ok so I have some bitUSD all ready.
What do I need to do to collect the interest and how often is it calculated?

Offline Riverhead

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #12 on: September 07, 2014, 07:47:20 PM »
So if you own BTSX it is wise to short USD to yourself so you can profit ?


Why not just buy bitUSD on the open market so your BTSX isn't held up?

Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time.


I have much to learn.

Offline Empirical1.1

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Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #13 on: September 07, 2014, 07:51:26 PM »
 +5% +5% Sounds great  :)

Offline onceuponatime

Re: BitUSD Yield (aka Interest) Scheduled for Launch Wednesday
« Reply #14 on: September 07, 2014, 07:57:42 PM »
ok so I have some bitUSD all ready.
What do I need to do to collect the interest and how often is it calculated?

I want to know this too. I already have bitUSD and bitBTC which I bought well above the current btsx price. So I plan on holding on to them for the interest. Do we need to do anything to start gaining the returns on Wednesday, or do the returns only apply to people who acquire their bitAssets on Wednesday or later?

 

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