Recently at Decentral in Vancouver we had a meetup with Max Wright to discuss BitShares and BitUSD:
https://www.youtube.com/watch?v=p023lanFsJE
This inspired me to write a blog about a possible attack on BitUSD and similar derivative currencies:
http://tpbit.blogspot.ca/2015/05/inert-versus-volatile-currencies.html
I am wondering - has there been some analysis done on this subject by the BitShares developers and if so, how do they assess the risk involved with a similar attack?
I wish you explain your attack with a bit more detail.
What you claim is that there is some multiplier when the short bitUSD are called and this puts a pressure on the BTS price???
In reality when the shorts are called they do try to buy bitUSD [i.e sell BTS if you wish to call it that], but it:
- happens on the internal market [as opposed on external one, where they would actual drive the price down in comparison with say BTC]
- they use BTS held in collateral for this operation
- and most importantly they do not drive the price down...they just sit there trying to buy bitUSD at the current feed [or 0.9 of it, unfortunately, in the current design].
I really do not see/understand how your multiplier is supposed to work.
Thanks.