Now shorted BTA should been covered in one month , it is so short . many people think BTS is bullish in future , but cannot know in one month . so there only a few people to short BTA. can we introduce one month short , there month short ,six month short. one year short . it mean cover the short in one,there ,six twelve months respectively. and there is a required MIN yield per type of short
For example,
Short type Cover deadline required MIN yield required MIN collateral
one month short in one month 0% 300%
there month short in there month 4% 300%
six month short in six month 8% 400%
twelve month short in twelve month 16% 400%
now translation queue according to yield.
so
queue yield for queue =Yield supply by shorter -required MIN yield
Yield harvesting means that the yield provided by the short does not necessarily benefit the long even though the long does suffer from this change because of lower volume on the BitAsset/BTS exchange (due to less frequent forced turnover) and an inability to guarantee exiting into BTS in 1 month. The increased minimum collateral also doesn't protect against undercollateralization risk much because the margin call would still be the same. So in short, all this does is add unnecessary disadvantages to shorts to compensate for the huge advantage it provides for longer terms, but it does not provide any advantages to the long even though it causes huge disadvantages to the long.
I don't think it is a good idea to have different term lengths within a given BitAsset/BTS market. It is fine if a different BitAsset variant had a different term length (for example the current BitUSD could be BitUSD-30 and we could have another asset BitUSD-90 which had term lengths of 3 months; these two BitUSDs would of course not be fungible with one another), but within a single BitAsset I think it is better for the terms to be the same. We can then argue whether the standard BitAssets we have today should have a term length of 30 days or if we should extend it a little. Personally, I think 30 days is fine.
In fact, when we start discussing different term lengths, I think what we really should be talking about are bond markets. There can be 1-month BitUSD bonds, 3-month BitUSD bonds, 6-month BitUSD bonds, etc. Then by selling it for some price less than its nominal value to someone going long, it effectively sets the interest rate in a way that cannot be harvested like yield can. So, the people who want to speculate on USD/BTS price over the long term would use the bond market, but people who want cryptocash (perhaps with no to little yield) would want BitUSD with a short 30-day term limit to ensure a nice market peg.
Also keep in mind that it is already possible today to effectively extend your term length by using a larger effective collateral. That is what
this post was all about. In that post I discussed how it was possible to effectively have three consecutive terms without realizing losses (given certain assumptions like the price never dropping more than 33% within a 30 day period) until the end of the third term. If I assume 7 days is allocated for finding the right opportunity to self-short at 0% interest (meaning I assume it is possible to find the market in a state where there are no BitUSD sell orders at or below the price feed within a 7 day window) then that means in the worst case I have 23 days per each term. If I want 4 consecutive terms to allow for 92 consecutive days (three months) without realizing losses, I need to choose N = 3 (see my linked post) which gives a
p_3 = 20% and means that I can only (conservatively) short sell at most 10% of the value of my BTS. Essentially this means that my effective collateral (BTS I have allocated for this purpose and cannot be used for other purposes) is not a little over 200% (nearly all in collateral) but rather 1000% collateral (200% in collateral and 800% held on the side for roll overs). If by the end of the third month I can auto-cover at the price feed which is at a price (in BitUSD/BTS) that is larger than the price I initially shorted at (3 months prior), then I will gain a BTS profit.