BitShares Forum
Main => General Discussion => Topic started by: fluxer555 on January 04, 2015, 05:21:11 pm
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The prices on BTER may be inflated because of their 1% deposit bonus / 1% withdrawal fee. Should price feed scripts take this into consideration?
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1% isn't much, plus since they cancel each other out, wouldn't that be just no effects?
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The prices on BTER may be inflated because of their 1% deposit bonus / 1% withdrawal fee. Should price feed scripts take this into consideration?
True BTER BTS is basically worth 1% less than real BTS.
But then again 1% isn't too dramatic at the current point in time.
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How does a BTER fee imply that users would value their BTS differently? I don't believe you that this is true, and therefore I don't believe that feed scripts should consider this. Perhaps a better explanation is needed?
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The only effect it has is for people with arbitrage bots - positional traders won't change their strategy. So BTER's lowest ask will be the highest lowest ask over all exchanges. I don't think price feeds should be adjusted.
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How does a BTER fee imply that users would value their BTS differently? I don't believe you that this is true, and therefore I don't believe that feed scripts should consider this. Perhaps a better explanation is needed?
Sellers obviously get an 1% advantage selling BTS at BTER, and buyers a 1% disadvantage.
So if a seller has the choice to sell at BTER for a price 0.5% lower than on a different exchange they still choose BTER.
The other way around as a buyer I would rather buy at a different exchange with a 0.5% higher price than at BTER with a 1% fee.
As a result there are less buyers and more sellers than on an exchange without this 1% bonus/fee.
Or a different view on things:
Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)
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Or a different view on things:
Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)
Imagine you deposit 1000 BTS, you get 1010BTS in the book of bter, now you withdraw this 1010 BTS, you only receive 999.9BTS. You loose 0.1BTS.
The 1% deposit gain is not exactly canceled out by 1% withdrawal fee.
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Or a different view on things:
Let's assume for simplicity sake that the BTS total supply is exactly 2.50 billion.
Now imagine all 2.5 billion BTS get deposited to BTER. Everybody get's the 1% bonus and suddenly there are 2.525 billion BTER BTS in existance. The market cap didn't change though. (Because BTER didn't spend any money to give out this bonus. They just take it from the withdrawal fee.) That means that the price of BTS and BTER BTS must be different. (Exactly by this 1%)
Imagine you deposit 1000 BTS, you get 1010BTS in the book of bter, now you withdraw this 1010 BTS, you only receive 999.9BTS. You loose 0.1BTS.
The 1% deposit gain is not exactly canceled out by 1% withdrawal fee.
Well okay, true. But this is 1% of 1%, that should be pretty much negligible.
And besides that makes everything even worse. Because buyers have a 1.01% disadvantage.