BitShares Forum
Main => General Discussion => Topic started by: ripplexiaoshan on July 16, 2018, 04:08:53 am
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This is a translation of https://bitsharestalk.org/index.php?topic=26820.0
Fund Introduction:
Spring BTS Fund is a BTS interior fund jointly initiated by Waterdrip Capital (www.waterdrip.io)and Ivy Capital(www.ivycapital.com). Fund token issuance, subscription, management, and all other operations are carried out on the decentralized exchange and the asset management platform, BitShares. The fund accounts are jointly managed by the two Capital via multiple signatures. All operations are open and transparent.
Fund Establishment Purpose:
The BTS that are idle within BitShares can be used for collateral to generate bitCNY. On one side, it increases the supply of bitCNY. On the other hand, it plays the role of stabilization fund as it buys BTS when the market is low and sells at a high price. The specific operation point is based on the judgment of the fund managers. Meanwhile, Spring Fund can also be used as an angel investment fund to invest in blockchain projects of the cornerstone investment when the supply of bitCNY is sufficient or the fund itself achieves a large profit, which enables fund holders to make profits continuously.
Fundraising Target Group:
BTS holders with rich investment experience, who are able to fully understand the operation mechanism of BitShares, recognize the long-term value of BTS, believe that the current BTS price is underestimated and the supply of bitCNY is in severe shortage, and hope to bring together the strength of the community to steadily increase the BTS price and bitCNY supply, expanding and strengthening the ecology of BTS smart currencies and exchanges.
How to Subscribe Spring One
The fund voucher is the SPRING token issued within BitShares platform. Each SPRING corresponds to one unit of fund. The initial subscription price is 1BTS/SPRING. SPRING can be freely traded within BitShares.
You can send BTS to the BitShares account, spring-team (#1019038) before 2018.07.18. The minimum sending amount is 100,000 BTS, and the minimum increment is 100,000. The subscription by directly sending BTS can be guaranteed. After the fund account receives the BTS, it will send back the original account SPRING tokens as a voucher.
During 2018.07.18-2018.07.31, SPRING tokens can be purchased directly on the SPRING/BTS market at a price of 1 SPRING/BTS. The number of selling orders for SPRING tokens lodged in the fund account depends on the amount of participation in the first phase. If the first phase meets the requirements of fund operation, the second phase may no longer be placed.
Spring One Fundraising Amount:
Minimum starting amount is 50 million BTS
If the BTS amount raised before 00:00, 2018.08.01, of Beijing time is less than 50 million, the management team will return the raised BTS and close the fund. Otherwise, the fund will start operation.
The maximum amount is 200 million BTS.
The Management Fee of Spring One:
Two-thousandths of a quarter is used to manage staff salaries and legal compliance fees.
Spring Fund Purchasing and Redeeming Rules:
Since SPRING tokens can be circulated in the market, all fund holders can withdraw at any time by selling SPRING on the market.
The net value will be calculated at the end of each month of the first quarter, and the purchasing will be opened at the beginning of next month.
The purchasing and redeeming time is fixed once a quarter, when the fund managers will repurchase SPRING tokens on the SPRING/BTS market. The amount of BTS used for repurchasing is determined by the managers and the minimum is 10% of the total net value of the fund. At the same time, SPRING is also sold on the SPRING/BTS market for purchasing.
Spring 1 Net Value Calculation Rules:
The “average daily price” described below refers to the average price from 0:00 to 24:00 of Beijing time in addition to special instructions.
In the initial fundraising period, the initial net value is calculated according to the daily average price of the BTS/bitCNY transaction pair within BTS on the day when the fundraising amount reaches 50 million BTS.
At the end of each month of the first quarter, the daily average transaction price of the BTS/bitCNY transaction pair within BTS on the last day of the month is used to calculate the net value as the basis for the purchasing price.
The fund settles quarterly. The daily average transaction price of the BTS/bitCNY transaction pair within BTS at the last day of the quarter is used to calculate the BTS net increase A and the bitCNY net increase B.
Max (Min (A*10%, B*40%), 0) is taken as the fund retention ratio, and the rest as the net value increases. The retention fee will be awarded to the fund management personnel by issuing additional SPRING.
Specifically, first compare 10% of the increase in the net value of BTS and 40% of the increase in the net value of bitCNY, and then take the smaller value. If either of the two numbers is below 0, only a two-thousandths of the management fee will be charged.
For example,
Case 1: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 1.5 yuan one quarter later with the fund owning 70 million BTS and 20 million debts at the time, then the net value of BTS is 7000-2000/1.5=56.67 million BTS, and the net value increases 6.67 million BTS. The net value of bitCNY is 7000*1.5-2000=85 million bitCNY, and the net value is increased by 35 million bitCNY. The smaller of the two is based on BTS, so the fund retention fee is 6.67 million * 10% = 667,000 BTS. At the same time, at the end of the quarter, the fund will place at least 5.67 million BTS repos on the market.
Case 2: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 0.8 yuan one quarter later with the fund owning 80 million BTS and 10 million debts at the time, then the net value of BTS is 8000-1000/0.8=67.5 million BTS, and the net value increases 17.5 million BTS. The net value of bitCNY is 8000*0.8-1000=54 million bitCNY, and the net value is increased by 4 million bitCNY. The smaller of the two is based on bitCNY, so the fund retention fee is 4 million bitCNY * 10% = 1.6 million bitCNY. At the same time, at the end of the quarter, the fund will place at least 6.75 million BTS repos on the market.
Case 3: If the current BTS price is 1 yuan and the initial value of the fund is 50 million BTS, and the BTS price becomes 0.9 yuan one quarter later with the fund owning 60 million BTS and 10 million debts at the time, then the fund is in a loss whether calculated in BTS or in bitCNY, so the fund retention fee is 0. At the end of the quarter, meanwhile, the fund will place at least 5 million BTS to repurchase SPRING on the market.
Other Sources of Income of Spring Fund:
Spring Fund will establish a witness and organize professional and technical personnel to maintain it. If it is elected, the income will be transferred to the fund account as a net increase after deducting the maintenance personnel's remuneration.
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What date will the fund start trading?
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What date will the fund start trading?
July 18th， Beijing time.
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The managers of this fund are @bitcrab, @jademont and two other people from Ivy Capital.
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So currently spring-team has 22m BTS, they will start trading with it tomorrow immediately?
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You only buyback without burn? Does that mean you'll sell the bought back assets at a later stage?
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So currently spring-team has 22m BTS, they will start trading with it tomorrow immediately?
no, team will trade after collecting 50M BTS
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If 50M SPRING is sold you will add more SPRING to the market? Next round is another 50M or 150M?
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You only buyback without burn? Does that mean you'll sell the bought back assets at a later stage?
put into collateral, buy, sell, no burn, anyway, to help to stabilize the market is the very important consideration for spring fund while making trading decision at the first 6-12 months. while the public market operation fund grow big and powerful, step by step spring fund will remove the “stabilization fund” role from itself and focus on investment.
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You only buyback without burn? Does that mean you'll sell the bought back assets at a later stage?
I am guessing at end of quarter/redemption time there will be a buy wall for buy back placed feeding a sell wall just above for new investors.
Jademont, care to confirm?
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If 50M SPRING is sold you will add more SPRING to the market? Next round is another 50M or 150M?
will add more, but not your figure, will stop until 31th July 24:00 UTC-8 or the collected amount reach 200M. however in the month end of the first season, will also sell spring token if necessary.
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What is the take of the SPRING fund on the accumulated voting power? As an investment fund you will be non-voting?
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Excuse my potentially silly question, but how can one profit from investing into the fund? :) You thoroughly described the calculation of the management fee, but how will be determined the buyback price for SPRING tokens? I guess the price will depend on the value of the fund. Can anyone please explain?
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Excuse my potentially silly question, but how can one profit from investing into the fund? :) You thoroughly described the calculation of the management fee, but how will be determined the buyback price for SPRING tokens? I guess the price will depend on the value of the fund. Can anyone please explain?
there is one assumption for the fund to make profit - the fund can help to stabilize and develop the market and make the BTS price to go up. then the fund can make profit from the bought BTS at lower price.
here the point is that the fund can really help to stabilize the market by playing the role of the last fireman.
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So the buyback of SPRING will be at the same price in BTS terms, but you are expecting BTS to rise compared to Yuan (and overall)? At least if the fund is successful.
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looks like SPRING is going to start soon, can't wait to see how it goes
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What's the management fee (in %)?
Will SPRING be freely tradeable on the market 24/7/365?
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You only buyback without burn? Does that mean you'll sell the bought back assets at a later stage?
I am guessing at end of quarter/redemption time there will be a buy wall for buy back placed feeding a sell wall just above for new investors.
Jademont, care to confirm?
Exactly!
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What's the management fee (in %)?
Will SPRING be freely tradeable on the market 24/7/365?
As it was described in the main post, 0.2% is the management fee.
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To note that the trader's account is spring-trader, which is managed by professional trader from Ivy Capital.
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SPRING management team is considering to vote BSIP42 worker. https://github.com/bitshares/bsips/blob/master/bsip-0042.md (https://github.com/bitshares/bsips/blob/master/bsip-0042.md)
BSIP42 is suggested by abit, it introduce the new idea of "negative feedback feed price" to get more accurate pegging of smartcoin, we believe this will help the whole ecosystem, and also SPRING to grow.
if SPRING holders have any thoughts on this plan, please comment here.
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support! very good idea.
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Support！
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So the buyback of SPRING will be at the same price in BTS terms, but you are expecting BTS to rise compared to Yuan (and overall)? At least if the fund is successful.
Yes, we hope BTS ecosystem can grow, and also the BTS market cap.
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SPRING management team is considering to vote witnesses to push the implementation of BSIP42 if the voting WP is accepted at 7th Sep.
we'd like to adopt one metric to judge whether one witness work well on implementing BSIP42: if bitCNY has a more than 2% premium than fiat, then the fed price should be at least 9% higher than BTS price in DEX. currently only bitCNY feed price is considered.
if SPRING holders have any thoughts on this plan, please comment here.
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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?
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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?
举例论证公式效果，宽松目标负2%，加速因子N=3
当溢价负0.02时（折扣2%），加速因子喂3。理想喂价 = BTS市场价 * (1-0.02+0.02)^3=BTS市场价 *1^3=BTS市场价 *1,结论：目标达到理想状态，无需调整。
当溢价负0.01时（折扣1%），加速因子喂3。理想喂价 = BTS市场价 * (1-0.01+0.02)^3=BTS市场价 *1.01^3=BTS市场价 *1.030301,结论：市场价提高3%，接近理想目标。
当溢价0时，加速因子喂3。理想喂价 = BTS市场价 * (1+0.02)^3=BTS市场价 *1.02^3=BTS市场价 *1.0612,结论：市场价提高约6%，很满意，也很安全。
当溢价0.01时，加速因子喂3。理想喂价 = BTS市场价 * (1.01+0.02)^3=BTS市场价 *1.03^3=BTS市场价 *1.092727,结论：市场价提高约9.2%，满意，也很安全。
当溢价0.02时，加速因子喂3。理想喂价 = BTS市场价 * (1.02+0.02)^3=BTS市场价 *1.04^3=BTS市场价 *1.125,结论：市场价提高约12%，满意，也安全。
当溢价0.03时，加速因子喂3。理想喂价 = BTS市场价 * (1.03+0.02)^3=BTS市场价 *1.05^3=BTS市场价 *1.157,结论：市场价提高约15%，满意，也安全。
当溢价0.04时，加速因子喂3。理想喂价 = BTS市场价 * (1.04+0.02)^3=BTS市场价 *1.06^3=BTS市场价 *1.191,结论：市场价提高约19%，满意，安全。
当溢价0.05时，加速因子喂3。理想喂价 = BTS市场价 * (1.05+0.02)^3=BTS市场价 *1.07^3=BTS市场价 *1.225,结论：市场价提高约22%，风险依然可控。
我们可以看到，随着溢价参数的不断变大，市场价提高呈现线性下降趋缓模式。
实际上如果采用M=0.02，即宽松指标为2%，加速因子N=3，这样的公式后，溢价很难超过1%。因为当溢价达到1%时，喂价相对市场价提高了约9.27%，这个时候相当于MSSR为”0“了。也就是说爆仓单对内盘的价格不再有”压制“作用了，此时的内盘完全有动力和外盘保持价格”一致“。如果内外盘趋于价格持平，就是溢价消失的过程。
结论：如果采用宽松指数M=0.02，即宽松目标2%，加速因子N=3，那么理论上溢价不会超过2%。
Exemplification of formula effect, loose target negative 2%, acceleration factor N=3
When the premium is negative 0.02 (discount 2%), the acceleration factor is 3. The ideal feeding price = BTS market price * 1-0.02+0.02) ^ 3 = BTS market price * 1 ^ 3 = BTS market price * 1. Conclusion: The target is in an ideal state without adjustment.
When the premium is negative 0.01 (discount 1%), the acceleration factor is 3. Ideal feeding price = BTS market price * 1-0.01+0.02) ^ 3 = BTS market price * 1.01 ^ 3 = BTS market price * 1.030301, conclusion: the market price increases by 3%, close to the ideal target.
When the premium is 0, the acceleration factor is 3. Ideal feeding price = BTS market price * 1 + 0.02) ^ 3 = BTS market price * 1.02 ^ 3 = BTS market price * 1.0612, conclusion: the market price increase of about 6%, very satisfactory and safe.
When the premium is 0.01, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.01 + 0.02) ^ 3 = BTS market price * 1.03 ^ 3 = BTS market price * 1.092727. Conclusion: The market price increases about 9.2%, satisfactory and safe.
When the premium is 0.02, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.02 + 0.02) ^ 3 = BTS market price * 1.04 ^ 3 = BTS market price * 1.125. Conclusion: The market price increases about 12%, satisfactory and safe.
When the premium is 0.03, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.03 + 0.02) ^ 3 = BTS market price * 1.05 ^ 3 = BTS market price * 1.157. Conclusion: The increase of market price is about 15%, satisfactory and safe.
When the premium is 0.04, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.04 + 0.02) ^ 3 = BTS market price * 1.06 ^ 3 = BTS market price * 1.191. Conclusion: The market price increases about 19%, satisfactory and safe.
When the premium is 0.05, the acceleration factor is 3. The ideal feeding price = BTS market price * 1.05 + 0.02) ^ 3 = BTS market price * 1.07 ^ 3 = BTS market price * 1.225, conclusion: the market price increases about 22%, the risk is still controllable.
We can see that with the constant increase of the premium parameters, the market price increases show a linear decline slowing down model.
In fact, if M = 0.02, that is, the easing index is 2%, the accelerating factor N = 3, such a formula, the premium is very difficult to exceed 1%. Because when the premium reaches 1%, the feed price rises by about 9.27% relative to the market price, which is equivalent to the MSSR of "0". That is to say, the explosive warehouse receipt no longer has a "suppressive" effect on the price of the internal market, at this time the internal market is fully motivated and the external market to maintain a "consistent" price. If the internal and external prices tend to be flat, the premium will disappear.
Conclusion: If the easing index M = 0.02, that is, the easing target 2%, the accelerating factor N = 3, then the theoretical premium will not exceed 2%.
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SPRING management team is considering to vote witnesses to push the implementation of BSIP42 if the voting WP is accepted at 7th Sep.
we'd like to adopt one metric to judge whether one witness work well on implementing BSIP42: if bitCNY has a more than 2% premium than fiat, then the fed price should be at least 9% higher than BTS price in DEX. currently only bitCNY feed price is considered.
if SPRING holders have any thoughts on this plan, please comment here.
Support
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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?
logic:
1. 2% premium means bitCNY is already in serious shortage, need strong negative feedback.
2. when feed price < DEX price*MSSR, it is always safe as the margin called orders can always be eaten.
MSSR = 1.1, to be careful, we select 9%, not 10% as the metric.
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Who is the judge of what the correct fiat price is?
How did you calculate the 9% from the 2%? Could you elaborate that please?
logic:
1. 2% premium means bitCNY is already in serious shortage, need strong negative feedback.
2. when feed price < DEX price*MSSR, it is always safe as the margin called orders can always be eaten.
MSSR = 1.1, to be careful, we select 9%, not 10% as the metric.
Thanks for the clarification. It boils down to the questions now how the premium is defined. As a premium I would normally understand difference of the last market trade against the feed price.
If I understand correctly, you talk about premium here and mean the difference of the feed price against a fair FIAT price. How is the fair FIAT price defined?
My assumption was always that the fair FIAT price is exactly what the feed price of the witnesses *should* be, thus you are creating a formula which implicitly depends on the target unknown
feed_price = some_formula( feed_price, MSSR, ... );
In other words, your price feed formula is now a fully implicit differential equation and must be approximated numerically (with newton or similar).
If my above assumption is correct:
IMO a proper mathematical model should be defined for the price feed. I have an applied maths background and connections to the mathematical economics department at the FAU university here in Erlangen / Nuremberg. Are you guys interested in establishing a collaboration here? This is of course no short term approach, but I think it would greatly help in evolving the price feed. It would be e.g. a nice topic for a masters thesis.
If my above assumption is not correct:
How is the fair FIAT price and therewith the premium decided upon?
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actually BSIP42 redefined "feed price" as something like "guide price", not the exact market price.
there's someways to get smartcoin premium, for bitCNY, you can
1. get the bitCNY deposit/withdraw fee from magicwallet and then calculate out the bitCNY premium.
or
2. from exchange like AEX or ZB get BTS price in CNC or QC, it can be regarded as BTS price in fiat as CNC and QC are IOU of CNY. with the BTS price in bitCNY, you can calculate out the premium,
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updated witnesses voting. we would like to support the witnesses that work well in implementing BSIP42.
as now bitCNY is still in obvious premium(>1%), we select to vote the witnesses that always publish price which is higher than median.
we'll keep on checking the price feeding status and update the witness voting.
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BSIP42 works fairly well for bitCNY, now it's time to also apply it to bitUSD, we'd like to support the witnesses that take positive actions on this.
we also hope that witnesses can publish the price feeding algorithms, that can help voters to judge.
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BSIP42 works fairly well for bitCNY, now it's time to also apply it to bitUSD, we'd like to support the witnesses that take positive actions on this.
we also hope that witnesses can publish the price feeding algorithms, that can help voters to judge.
DON'T AGREE.
The spring Fund shouln't have the voting right, every witness and committee members should know this very clearly.
If the spring found want to have the voting right, The sping found should publish the voting procedure of the spring holders.
A foud shouldn't become a political tool.
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wether the fund can vote is an internal problem among the fund holders.
if there's consensus among the fund holders, why can't the fund vote?
no one can deprive the fund holders of their voting rights.
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if there's consensus among the fund holders, why can't the fund vote?
Consensus of all fund owners ?I highly doubt it.
You are using funds from people who are invested in spring fund but don't agree on BSIP42.
I know personly at least 1 fund holder who is against it
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wether the fund can vote is an internal problem among the fund holders.
If the fund wants to vote a public BSIP, it will not be an internal problem among the fund holders,.
the holders give the right of use to the foud, but not the voting right and the ownership to the foud, if the foud wants
these rights all，the foud need to public all the transfer agreement and the article of this foud.
Open and fair is the basic requirement.
Please give the details.
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updated witnesses voting, supported witnesses that take positive actions on implementing BSIP42 on bitUSD.
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yo bitcrab will BSIP42 be implemented on all committee bitassets?
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Q1 report:
Assets in account
BTS 92,215,801
bitCNY -12,353,484
bitUSD -1,619,888USD
Related accounts:
spring-team spring-trader spring-operator spring-finance
Besides, as BTS share holders, SPRING received a few sharedrops such as whaleshares BEOS, etc.. these tokens belong to SPRING holders. However, as these tokens have low liquidity, their value is not counted for now.
FUND net value:
The net value of the first three months is 0.893, 0.939, 0.839.
The plan of SPRING:
The best action in bear market is no action. However, we think the price of BTS is very close to the bottom, and we will continue to persuade people to join SPRING FUND to buy more BTS. Also, we are considering to support the development of third party APPs on bitshares, such as chess and cards games.