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General Discussion / Re: Should settlement prices have a size-based scale?
« on: May 24, 2015, 10:21:56 am »Like you said, BM discussed this briefly in the latest dev hangout but only mentioned that there could be several price feeds different sized ordersOK, I didn't actually know where it had been raised or that the idea might be similar, apart from some unclear references in the forum about a change coming to price feeds
Does your suggested method rely on price feeds from external USD/BTS exchanges?Ideally yes, although if it doesn't exist, any pathway from BTS to USD is sufficient to infer the purchase cost. e.g. BTS ->BTC->USD.
In this case, the manipulator has a choice to sit at the bid and absorb the selling behaviour he has successfully instigated, or he can settle the bitUSD which will price the BTS based off the mid-price plus a liquidity premium related to expected depth in the ask. The latter is a more expensive price.QuoteIf the manipulator had the power to spark a self-fulfilling cycle of panicked selling from other market participants that pushed the price down even further, then they would make more profit waiting to get hit on lower bids than to settle bitUSD at the asks, which is effectively like crossing the spread a second time. In practice though, I would still probably have a 24 hour non-cancellable delay on settlements to ensure minimum opportunity to take advantage of short term market aberrations not reflected in the current scale.
Could you explain this further? Specifically "make more profit waiting to get hit on lower bids than to settle bitUSD at the asks"
On the surface it sounds like BM's idea may be looking to accomplish something similar to what I suggested here, so maybe I'll wait to see how he describes that.
[Edit: I need to think more on this idea, not sure if it is actually a good idea or not yet]