That's the purpose of MSSR. Margin calls pay MSSR% more than the fair price for covering their debt.

Welcome back! :-)

You guys decreased the amount of active witnesses from 23 to 19 .Its a big harm to the bitshares network as it took ages to get us good witnesses.
I would like to ask to add some more witness votes to get us back more active witnesses so they won't leave us.

If the median is manipulated to 0.05 then a will update his feed when he checks next. That's why I said you should *check* frequently.

I admit that in your example the feed would be very much off for a short period of time, which could have catastrophic effects. It is an extreme example though, and I think that in practice such a situation would not occur.

Still, it makes sense to add another rule:

d) if your calculated feed price is off from your published feed price by more than 1-2%, you *should* publish the new price.

you are definitely wrong.
every witness should input the feed price without any dependence from other witness or median price.
this is what the meaning of "witness".

here is a possible result when follow your suggest:
suppose there are 3 witness, a gives price 0.059USD, b gives 0.06 USD, c gives 0.061 USD
when the price rise, b change to 0.061, c change to 0.062, a get a new price at 0.06, so he don't need to update feed price.
when b and c goes to 0.062, 0.063, a still keep unchange.
...
when b and c goes to 0.1, 0.101, a still keep unchange.
now b and c got a chance to control median price between 0.059 to 0.1.

for 21 witness, when there are 11 witness always get a little bit higher price, while other 10 always get a little bit lower, this could happen too.

Quote from: pc on April 22, 2019, 06:28:32 am

Quote from: sahkan on April 21, 2019, 10:27:53 pm

Is that were we are trying to go with this? Provide frequent up to a minute feeds?

*Publishing* a feed every 2 minutes is normally not required.

*Checking* the feed often is a good idea though. Technically you need to publish only if
a) your feed is about to expire, or
b) if the new feed price would change your position relative to the median (i. e. old price was below median and new price is above, or vice versa), or
c) your feed price *is* the median

You may want to publish more often than that to avoid being accused of neglecting your duties. :-/

In your example a majority of witnesses collude to manipulate the feed price. That always works, independent from what the minority does.

Is that were we are trying to go with this? Provide frequent up to a minute feeds?

*Publishing* a feed every 2 minutes is normally not required.

*Checking* the feed often is a good idea though. Technically you need to publish only if
a) your feed is about to expire, or
b) if the new feed price would change your position relative to the median (i. e. old price was below median and new price is above, or vice versa), or
c) your feed price *is* the median

You may want to publish more often than that to avoid being accused of neglecting your duties. :-/

If I were a trader and saw that margin calls happen regularly, I would place my sell orders 2% above the price at which the least collateralized short position is margin called, for an instant 2% profit. If I wanted to buy CNY on the DEX I would place my order 2% above that price, because otherwise I have no chance of getting it filled.

Thus, margin calls and feed price and MSSR all interact with each other. The DEX price is driven by margin calls, which are in turn driven by the feed price and MSSR.

If you reduce the MSSR to 1% the premium will also go down to 1%. Does changing MSSR change the "fair" price of bitCNY? I think not, but according to your logic the fair price would then be 1% higher than it is now, not 2%.

On an external exchange you don't have that effect, because the external exchange is not influenced by margin calls in the way that the DEX is. The result is that the external trade price is much more natural than the DEX price, and so can more reasonably be called a "fair" price.

The reason for the premium is that (once again) shorters are deliberately keeping their positions in margin call territory, which means all orders below MSSR get eaten up by margin calls. Using the DEX price as the feed in this situation would be completely wrong, because the margin calls *define* the DEX price in terms of feed price and MSSR. There is your feedback loop.

Blaming this on the witnesses is short-sighted and unfair IMO.