BitShares Forum

Main => General Discussion => Topic started by: biophil on February 20, 2014, 02:46:30 pm

Title: How is the first BitUSD created?
Post by: biophil on February 20, 2014, 02:46:30 pm

Here's a question I've been wondering about:

When the Bitshares XT market first launches, there won't really be a market price for XTS since there won't have been any market transactions. So what will determine the collateral needed to short USD (and create BitUSD)? Will there be some hard-coded "starter-price" that disappears after the first XTS-BitUSD transaction?

Title: Re: How is the first BitUSD created?
Post by: toast on February 20, 2014, 03:33:48 pm

People will just place bids and asks like in a normal marketplace, except all the sells are short sells. As soon as a "trade" occurs that's the price at which the short puts down collateral

Title: Re: How is the first BitUSD created?
Post by: biophil on February 20, 2014, 04:37:09 pm

Ah, of course. I was imagining that the transaction that creates a BitUSD was somehow different from an ordinary short sell order. Thanks!