BitShares Forum
Main => Technical Support => Topic started by: biophil on June 19, 2017, 11:42:53 pm
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The big smartcoins all seem to have a parameter called "force settlement offset" set to 1%. What is this? Does it mean that you get only 99% of the face-value BTS when you request a settlement?
If so, what is the purpose of this?
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Does it mean that you get only 99% of the face-value BTS when you request a settlement?
Yes.
BTS when you request a settlement?
To discourage forced settlement. Why we need to discourage forced settlement is another question.
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I recall @bitcrab & @pc having a in depth discussion on this awhile back.
This forum is difficult to search however here are two interesting threads to read:
https://bitsharestalk.org/index.php/topic,16143.0.html
https://bitsharestalk.org/index.php/topic,20356.0.html
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The big smartcoins all seem to have a parameter called "force settlement offset" set to 1%. What is this? Does it mean that you get only 99% of the face-value BTS when you request a settlement?
Yes, basically.
If so, what is the purpose of this?
Here's the original discussion: https://bitsharestalk.org/index.php/topic,22355.0.html
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If so, what is the purpose of this?
Here's the original discussion: https://bitsharestalk.org/index.php/topic,22355.0.html
Thanks for linking that discussion. The discussion is so painful. It's one of a million more "hey all let's go tweak this parameter very slightly in favor of X user group over Y user group, because hey, most of us voting types are X user group anyway and nobody from Y user group is here to protest! It will solve perceived problem Z while predictably creating a new set of problems A, B, and C!"
And now, the forseeable consequence is that now that we have much higher liquidity bitassets, they all trade below the peg.
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Thanks for linking that discussion. The discussion is so painful. It's one of a million more "hey all let's go tweak this parameter very slightly in favor of X user group over Y user group, because hey, most of us voting types are X user group anyway and nobody from Y user group is here to protest! It will solve perceived problem Z while predictably creating a new set of problems A, B, and C!"
And now, the forseeable consequence is that now that we have much higher liquidity bitassets, they all trade below the peg.
Ha-ha, you are so right here :)
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I'm not even convinced that the offset benefits shorters, TBH. I mean it certainly benefited people who had open short positions at the time, but for new positions it's a wash. All it does is move the price down, which means that opening a short position now happens at a slightly lower price. It's just silly.