Quote from: yvv on August 30, 2017, 02:27:30 pm

If you are long on USD - you buy bitUSD. If you are short on USD - you issue and sell bitUSD.

In order for you to be able to buy bitUSD, somebody else have to issue them and offer for sale. This is a two-party contract.

Thank you for the answer! If this is the case, if everybody expects that bitUSD will be strong against BTS for a while, nobody will issue bitUSD and the market will suffer from the lack of liquidity. Then the market will respond and the price of bitUSD will become more expensive up the point the short positions become profitable, which could be critical for bitUSD based payment services. Is my understanding correct?

Pretty much correct. Many MPAs, including bitUSD, have liquidity issues because people hesitate to short them. Right now bitUSD is traded about 4% above the peg, which indicates a deficit (it used to be worse than this in the past). The way to bring it back to peg is to issue and sell more, if you are brave enough.

tenX, Monaco and all other coins in this field simply abuse the lack of intellect of the people

No, they provide ramps from crypto into real world. This is a very important service for crypto ecosystem. Yes, this service is centralized, but what's a problem with that?

How other oracles on ETH go around this (augur etc)?

This would be very useful as currently the only way to do this is with a third party Bot- BTSbots is also closed source.

Alt wrote in trollbox:

btsbots.com have already open source for some days: https://github.com/pch957/btsbots-demo-2016

but it can't handle the fork good, so you'd better wait for the new release.

Perhaps a market maker (or other trader) can tell us if that'd be a useful feature for them?

It is extremely useful feature for market making, and for trading in general. Surprisingly, such a simple strategy as just following a feed price with fixed spread, turns out to be profitable most of the time. But, you know, this feature is already implemented in btsbots wallet and everybody can use it. Some people may say that there is no sense to re-invent a bicycle.  Btsbots have a weakness though, which may keep somebody from using it: you need to trust a centralized price feeds. But, these centralized feeds are often more reliable than feeds posted by witnesses on BTS. Also, btsbots provide feeds not only for MPA, but for many UIA too. IMO, ideally it would be cool to resolve centralization issue by implementing price feed tracking in BTS wallet, and also improve the quality of price feeds and also add feeds for major UIA. If some people blame me that I want too much, they will probably be right.

BTSbots allows you to make feed tracking orders with offset, which you can set to 0 if you wish. This does not help to keep the peg, because nobody is going to take your order at feed price if better offer is there. But nevertheless, this is very simple and effective strategy for automated market making which would be absolutely cool to have in default client (with offsets of course).

For those who have not enough brains to distinguish between good buybacks and bad buybacks here is a little example: bitAssets also use buyback and burn model. But guess what is the difference? Tip: bitAsset investors are protected by forced settlement and they are guaranteed to sell their tokens at face value no matter what current market price is.

What is offered here is a bullshit. Investors are tricked into a guaranteed loss. No, people, you have to buy back your tokens at no less than you sell them during ICO. I don't know how to do this, it's your job to come up with a way. Until then  you may stick your tokens into your butt.

yup nothing wrong with buyback and  burn

There is no problem with buybacks. The problem is that they set it up such a way, that they are able to buy their tokens back cheaper than they sold them during ICO, which means that you will not be able to sell them at higher price than you bought. Same as OBITS. And there is no way to control how much will they buy back from themselves, driving the price down.

The way to guarantee a profit is to hold until the price is above the price you paid.

Bullshit! The only way to guarantee a profit is to stay away from this scam.