BitShares Forum
Main => Technical Support => Topic started by: matt608 on September 25, 2014, 09:03:45 pm
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Am I correct in saying that on third party exchanges, such as bter.com which trade BTC/bitUSD the market peg is not in place as it's just a simple exchange, the same as any alt coin, and this is the cause of the unwanted volatility we have seen on bter?
https://bter.com/trade/BITUSD_USD
I had thought we want to have bitassets on as many exchanges as possible to increase demand and go to potential buyers, rather than having them come to us.
However, I'm now wondering if bitassets being added to third party exchanges could be harmful, as the market peg is not in place there, is it? Or do we think the price on other exchanges will stay close enough to the decentralized exchange price for it to be worth the risk, after all it is still pretty stable on bter. Or is the 'market peg' in place there in a way I am not understanding?
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"market peg" is an abstract concept, not a market mechanic.
The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.
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"market peg" is an abstract concept, not a market mechanic.
The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.
Ok thanks. I understand it's abstract and not market mechanics. So centralized exchanges could become bitasset exchanges and it should still work.
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"market peg" is an abstract concept, not a market mechanic.
The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.
Ok thanks. I understand it's abstract and not market mechanics. So centralized exchanges could become bitasset exchanges and it should still work.
It actually helps us significantly to have centralized exchanges allow trading of the direct asset. It allows people "make the market" manually without having to provide a bot. Just offer to buy BitUSD at 98 and sell at 100.
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"market peg" is an abstract concept, not a market mechanic.
The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.
Ok thanks. I understand it's abstract and not market mechanics. So centralized exchanges could become bitasset exchanges and it should still work.
It actually helps us significantly to have centralized exchanges allow trading of the direct asset. It allows people "make the market" manually without having to provide a bot. Just offer to buy BitUSD at 98 and sell at 100.
Ok great, just making sure, as I've been pitching bitassets to a bunch of exchanges.