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Stakeholder Proposals / Re: [Poll] BSIP59:Reduce MSSR of bitCNY to 1.01
« on: May 09, 2019, 10:35:57 am »
BTS need to encourage bitCNY supply when it is in obvious premium and shortage.
a lower MSSR can help to make the yellow order highly placed and create chance for traders to borrow more with low CR and get profit.
I have explained this idea at https://bitsharestalk.org/index.php?topic=28367.0
there is a price called "switch price", at which BTS/bitCNY pair switch from "margin call orders is eaten instantly" to "yellow orders highly placed" status, this price is relevant to market depth, market emotion and MSSR, currently the switch price for bitCNY is about lower than 0.4CNY.
if the price is below switch price, traders get incentive to borrow more and buy BTS, however there is accumulated risk; if the price is above switch price, yellow orders will be eaten instantly and no risk accumulated, but traders are not so incentivized to borrow more.
for bitCNY it will be good to make the switch price a little higher by lowering MSSR, it will encourage bitCNY supply and also lower the premium.
set MSSR=1.01 for bitCNY is a good choice, let's do that!
a lower MSSR can help to make the yellow order highly placed and create chance for traders to borrow more with low CR and get profit.
I have explained this idea at https://bitsharestalk.org/index.php?topic=28367.0
there is a price called "switch price", at which BTS/bitCNY pair switch from "margin call orders is eaten instantly" to "yellow orders highly placed" status, this price is relevant to market depth, market emotion and MSSR, currently the switch price for bitCNY is about lower than 0.4CNY.
if the price is below switch price, traders get incentive to borrow more and buy BTS, however there is accumulated risk; if the price is above switch price, yellow orders will be eaten instantly and no risk accumulated, but traders are not so incentivized to borrow more.
for bitCNY it will be good to make the switch price a little higher by lowering MSSR, it will encourage bitCNY supply and also lower the premium.
set MSSR=1.01 for bitCNY is a good choice, let's do that!