Am I right in thinking If I buy smartcoin with bts for less than the settlement price I can then instantly settle it and make a profit?
yes there is, unfortunately polo's withdrawals seem down...as well as their customer support
finally I know what 'settle' means ......yes
this is really suck
bts's price is 0.021CNY/BTS at BTC38
but most witness give a feed price at 0.02 CNY/BTS, so the settle price is 0.02
what will happen?
people sell BTS at BTC38 at price 0.021, get fiat CNY, then sell fiat CNY to transwiser, get bitCNY, then settle at the wallet, buy back BTS at price 0.02
who gets hurt? the shorters again! why we always hurt the shorters? they provide liquility, but we hurt them again and again
I would ask all witness adjust SQP to 1001, and set feed price to a high than low, at this time, it's 0.021CNY/BTS.
it's time to protect all shorters!
I would ask all witness adjust SQP to 1001, and set feed price to a high than low, at this time, it's 0.021CNY/BTS.
it's time to protect all shorters!
yes, change SQP to 1001 is not for this case.
I would ask all witness adjust SQP to 1001, and set feed price to a high than low, at this time, it's 0.021CNY/BTS.
it's time to protect all shorters!
changing SQP doesn't help at all in this case. you might as well set it to 0000, if you're advising 1001 or lower.
the current BTS:CNY market is a perfect example of how little changing SQP is going to effect the price. SQP is currently 1100 and CNY:BTS is trading around 0990 - 0995.
If there are no orders being margin called , like the current situation, SPQ is not even a factor. If it was, all these buy orders would be sold into down to 10% below settlement price or until the margin order was filled. SQP doesn't do anything if there are no undercollateralized orders.
if bitUSD's holder can use settle to protect their profit, I can't find any reason why we need to set SQP to 1100 .
if bitUSD's holder can use settle to protect their profit, I can't find any reason why we need to set SQP to 1100 .
bitUSD holders wouldn't use settlement because they can get a better rate selling bitUSD to the market. Settlement is only for a condition where noone is willing to sell BTS below the feed.
the reason for SQP (or something like it) is to enforce margin calls without raping the shorts due to poor liquidity. When a position approaches being undercollateralized, at some point, it *Must find a buyer to protect the system from black swan. SQP is just how far from the feed we are willing to go in order to find a buyer before its too late. On any other exchange this number would be infinity% (edit: if the order triggered margin call). They would sell the asset down to zero, if they had to, to try and prevent undercollateralization. So 10% is not so unreasonable. At 1% below the feed, you may never find a buyer. Thats why I say if you're setting it to 1% you may as well not even enforce margin calls.
if bitUSD's holder can use settle to protect their profit, I can't find any reason why we need to set SQP to 1100 .
bitUSD holders wouldn't use settlement because they can get a better rate selling bitUSD to the market. Settlement is only for a condition where noone is willing to sell BTS below the feed.
the reason for SQP (or something like it) is to enforce margin calls without raping the shorts due to poor liquidity. When a position approaches being undercollateralized, at some point, it *Must find a buyer to protect the system from black swan. SQP is just how far from the feed we are willing to go in order to find a buyer before its too late. On any other exchange this number would be infinity% (edit: if the order triggered margin call). They would sell the asset down to zero, if they had to, to try and prevent undercollateralization. So 10% is not so unreasonable. At 1% below the feed, you may never find a buyer. Thats why I say if you're setting it to 1% you may as well not even enforce margin calls.
and then I thought you got it right at one point in the past.
What buyer? You will not find a buyer for the BTS at 10% discount on the illiquid (the DEX compared to all other markets BTS is trading) market?
And why will that be? Because of the price or because this is thin and illiquid market? So lets screw the shorts by making them pay X % above market rate. Why stop at 10% or 50% percent, lets make 250% percent...and this will be the short path to market liquidity in bitWhatever...for sure.
+5%
are you sure the settle price is always the settlement price(feed price)?
if yes, then when one user settle, who is his counterparty?
@bytemaster: this is what it should do .. not sure if it is implemented that way or just calles the least collateralized position right awayare you sure the settle price is always the settlement price(feed price)?
if yes, then when one user settle, who is his counterparty?
It should take the highest bids first, down to the feed, and then the least collateralized short.
A side note, if there are bids higher than feed price already, why bitcny holders would use settle instead of sell?are you sure the settle price is always the settlement price(feed price)?
if yes, then when one user settle, who is his counterparty?
It should take the highest bids first, down to the feed, and then the least collateralized short.
I would advice add a parameter for settle price rate: settle price = feed price * rateNo need to set another parameter, just feed the settlement_price to what it should be, it's designed to should not be equal to (weighted) average exchange price.
the rate's range can adjust from 95% to 105%, mostly it should more than 100%
and need another logic to protect shorters, if a shorter's colla rate is more than 200%, no one can settle from him.
bts's price is 0.021CNY/BTS at BTC38The reason is the price feed script calculates price of bts/cny not only from btc38/yunbi, but also includes some weight by [average price of bts/btc on poloniex/bitfinex] * [average price of btc/usd on external exchanges(bitstamp and so)] * [usd/cny price from yahoo]. When prices of BTC on USD exchanges are lower than which on CNY exchanges, the bts/cny price feed will be lower than the price on btc38.
but most witness give a feed price at 0.02 CNY/BTS, so the settle price is 0.02
what will happen?In this case Transwiser should charge more fees while selling bitCNY.
people sell BTS at BTC38 at price 0.021, get fiat CNY, then sell fiat CNY to transwiser, get bitCNY, then settle at the wallet, buy back BTS at price 0.02
who gets hurt? the shorters again! why we always hurt the shorters? they provide liquility, but we hurt them again and again
if you can buy smartcoin cheaper than feed and than setlle for a profit why isn't their a huge buy wall just under the feed price all the time?
if you can buy smartcoin cheaper than feed and than setlle for a profit why isn't their a huge buy wall just under the feed price all the time?
Generally with rational market participants you shouldn't be able to buy smartcoins cheaper then the feed. Anyone selling there is making an error, doesn't know about settlement, are in a hurry, or they figure the price in 24hrs will move against them so much that it will be cheaper to not use settlement.
You are welcome to maintain a bid just below the feed, you simply risk 24hr price movement and the fee's involved. As well as the possibility that your bid will never get hit, if market participants are rational and efficient.