BitShares Forum
Main => Technical Support => Topic started by: Chris4210 on July 17, 2015, 10:50:18 pm
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Hi all,
I am looking at the Bitshares market for quite a while now and test several markets. I came to wonder about how to really start a market. Or even a user issued asset market.
If I want to start a marked paged market like BITHKD. I have to first buy BTS and then short the market with my BTS to bring BITHKD into existence. With more short orders, more BITHKD will be available to trade. Right?
How can we develop a new market, also a DAC (own coin) market without burning thousands of BTS with initial money losing shorts?
How did the USD market started? Any exp from the first traders?
I am looking forward to your ideas and opinions.
Thx
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Hi and welcome.
You'd be well advised to wait for the release of the revised protocol later this year. You'll be able to launch private bitassets with your own parameters and earn fees from all activity on your asset as well as fees from users that you bring to the system. I highly recommend all the articles on https://bitshares.org/ to get a glimpse of what's to come.
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More to the point, you can self create bitAssets more easily in 2.0 - right now you can short to yourself to achieve the same goal, but its a pain.
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thank you for the first feedback.
I know it is very expensive to do it right now. I played a bit around with shorting Turkish lira and HKD to see how it works. The results are zero.
I really wonder how users or asset delegates can start a dry market. Especially when there is nothing to buy? Like the Gold market. I was watching the gold asset for weeks without any sales position, because nobody wanted to sell and no gold was available.
What was the Bitusd exp? How did it started here?
Thanks in advance
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i think there's also a process for importing price feeds to generate the pegs, but i'm not yet familiar enough with that technical process. i think it comes through the delegates.
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Hey Chris,
Your question was highlighted, on the Dev Hangout https://beyondbitcoin.org/bitshares-dev-hangout-bytemaster-on-shareholder-approval-july-31-2105/ (https://beyondbitcoin.org/bitshares-dev-hangout-bytemaster-on-shareholder-approval-july-31-2105/) and BM has proposed 2 solutions if you want to start a currency.
First solution suggest that you should have more money than all of your currency's users combined so you can be able to buy BTS for your users equal to the price of your currency, plus buy 110% more BTS to make a short position to create the currency.
For me I don't think any startup business can handle this much, as it looks not scalable at all.
On his second solution, BM propose fractional systems where you back only 10%. I don't know whether he meant to reduce the parameter for the minimum requirement for the Collateral rate (if such parameter exists), or actually playing with the price feed to reduce the amount of the Collateral till it reaches 10% of the actual price, which I suppose would hurt the exchange rate between your currency and other currencies (since your currency will have a low value)
Please if I'm mistaken I would be happy to be corrected.
I would love to hear more solutions to how to bootstrap a new user-issued currency on top of BitShares 2.0