BitShares Forum
Main => General Discussion => Topic started by: mostar on December 02, 2017, 07:22:57 pm
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Hi,
I would like to propose an idea that maybe easy to implement is Bitshares code.
It can attract more traders to the Bitshares DEX, and allow us to offer a unique solution.
If a trader believe an asset will decries in value, he can short it and make some profit.
Today traders have hard time to short BTC (and other coins). Only few exchange allow it and there is high interest on borrowing for short.
Bitshares DEX allow to create BitBTC and be short on BTC. BUT there is a catch the collateral must be Bitshares coin BTS! . Meaning that the trades must be long in Bitshares.
Trader want to short BTC against USD and not against Bitshares!
My idea is to let the trader to chose which smatcoins will be a collateral.
Its easy to calculate the on going collateral amount need of the smartcoin he chose.
A value equal to *1.75 Bitshares.
Because the blockchain already have price feed on all the smatcoins.
It this way the trader can short BitBTC against BitUSD, BitETH against BitBTC and any other combination that suit his expectation.
What do you think?
Mostar
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There is technically no difference if you keep BTS as collateral or bitUSD or other bitAsset. As long as collateral asset can be easily converted into borrowed asset, this is fine. Any bitAsset can be easily converted into any other bitAsset either through a direct market or through forced settlement to BTS first.
This is actually a very nice idea. The first bitAsset should still be issued by somebody, who is long on BTS. Let's say, Alice issues 1st bitBTC backed by BTS and sells it to Bob, who is long on BTC. Now, Bob can lock his 1 bitBTC as collateral, issues 5000 bitUSD and sells them to Carol, who wants to keep her money in blockchain instead of bank account. Carol's 5000 bitUSD would be effectively backed by a 20000 USD worth of BTS, which Alice locked. Carol can settle her bitUSD for BTS any time. This way every bitAsset is properly backed and a risk of shorting is distributed between multiple people.
Actually, bitAssets is a pioneering experiment with a lot of unrealized potential. If it was re-iterated in a smart way, it could surely beat a shit out of centralized competitors in margin trading.
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It's worth to make a worker. This must work on the wide ranges of more accurate smartcoins' feed price.
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How can I address this issue to core and UI developers in order to estimate and create a worker proposal?
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I support the idea. I do not understand how it is possible that you can not make a short with BitBTC and BitUSD. Why good ideas do not break through in Bitshares?
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How can I address this issue to core and UI developers in order to estimate and create a worker proposal?
I think we lack manpower. The best way to proceed would probably be to find a good developer ( not so easy task ), and make a WP together with him. If we had more developers things would move faster. The community seems pretty positive about funding good work nowadays.
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Margin trading is such a non-trivial matter that it is not sufficient to be just a good programmer to make a proper software, this has to be done by developers who understand how markets work very well.
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Look like it technical possible
https://bitsharestalk.org/index.php/topic,25496.0.html (https://bitsharestalk.org/index.php/topic,25496.0.html)
bitXCD collateral in bitUSD.
We should have other smartcoin backed by bitUSD!