BitShares Forum
Main => General Discussion => Topic started by: cylonmaker2053 on July 24, 2015, 03:40:42 pm
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Short sellers must be shellshocked, or the system just isn't providing the right incentives at present:
(https://cdn.pbrd.co/images/2ctXhRgl.png)
Maybe 2.0's design to segment interest from short selling isn't such a bad idea...
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now that i have a ton of BTS tied up in short positions, i see that a big weakness of the current system is that at expiration short positions can't simply unwind by returning the borrowed BTS to the original bitUSD buyer. we have to hope for there to exist more short sellers willing to open new positions for us to buy bitUSD. with this current order book you can see the problem...when demand to short dries up, we're screwed...sitting on positions we can really only roll forward by shorting to ourselves and way above the price feed.
segmenting this system in 2.0 into a bond market seems like a good decision bc now we'll have debt instruments with fixed duration that automatically expire and return funds to original parties.
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What this chart really says is that those who hold BitUSD really like +1 interest and are comfortable letting their BitUSD ride.
CCEDK has a sold buy wall for BitUSD / USD and no one selling for real USD. This means that BitUSD holders are happy to hold.
The only incentive we have to get BitUSD holders to sell is to give them more than $1.00.
Remove the interest and there will be less incentive to hold BitUSD which will help the shorts out some.
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What this chart really says is that those who hold BitUSD really like +1 interest and are comfortable letting their BitUSD ride.
CCEDK has a sold buy wall for BitUSD / USD and no one selling for real USD. This means that BitUSD holders are happy to hold.
The only incentive we have to get BitUSD holders to sell is to give them more than $1.00.
Remove the interest and there will be less incentive to hold BitUSD which will help the shorts out some.
yeah i can see why 2.0 is taking the new direction now, segmenting interest from bitUSD. i can also see why bitUSD holders are happy to sit on their positions. hopefully as the BTS rally gains steam more people will be interested in shorting and those holding bitUSD as BTS shorts will at least unwind a bit.
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When BTS goes bull mode, some of those bitUSD holders will want to trade back into BTS to take part.
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When BTS goes bull mode, some of those bitUSD holders will want to trade back into BTS to take part.
Other way around as well ;)
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When BTS goes bull mode, some of those bitUSD holders will want to trade back into BTS to take part.
Other way around as well ;)
Yeah that happened already.
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When BTS goes bull mode, some of those bitUSD holders will want to trade back into BTS to take part.
Other way around as well ;)
Yeah that happened already.
upward BTS momentum should tilt incentives a bit more favorably towards clearing this market one way or another; whether it's just presenting more short profit opportunities, or bitUSD longs unwinding to preserve their BTS balances, etc.