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Topics - bitcrab

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General Discussion / market fee sharing setting for smartcoins
« on: June 15, 2019, 01:29:33 pm »
now the market fee sharing feature is ready in core code, although it is not completely ready in GUI, I think it's time to consider the relevant setting for smartcoins.

at the first step, one idea is to set parameters of bitCNY, bitUSD and bitEUR as below:

set the reward percent to 80%

reset the market fee to 0.1%

which means, users pay 0.1% market fee for the smartcoins, however the life time members will get 80% back.

80% of the market fee paid by basic members will be paid to the referer.

I believe this setting will greatly encourage users to become life time members and invite new users.

any thoughts?

中文(Chinese) / BTS投资指南
« on: June 10, 2019, 01:23:39 am »



先来个假设,假设BTS完全在内盘流通,没有上外盘的中心化交易所,而且90%的流通量(当前总流通量2,722,138,126 BTS)都被某大户控制了,该大户将这些BTS全部抵押,按3倍抵押率,如果价格是0.5CNY的话,那么可以借出4.1亿bitCNY。











General Discussion / why not borrowing?
« on: June 09, 2019, 06:39:34 am »
as shown below, some top whales has big amount of BTS and 0 debt.

I just wonder what kind of thoughts lead to this? do they all hold the policy that "buy while cheap and sell while expensive, do not borrow"?

bitUSD is still in big shortage and has a 2%+ premium, it will be good for more stake holder to borrow bitUSD and release(via buying BTS or others) to the market, right?

in the past, it seems the  "buy while cheap and sell while expensive, do not borrow" policy behaved well, "shorts and buy back" policy behaved even better, right?

we have done a lot change to make the rules more friendly to longs, help the system to resist shorting attack.

Target CR, MSSR reduction.

I hope these changes will make "borrow and buy" policy better than the "0 debt" policy.

if when bitUSD is in such a big shortage and high premium but only few users want to borrow bitUSD and release to the market, it's hard to say the changes succeed.

General Discussion / [Announcement]Change of bitEUR parameters
« on: May 31, 2019, 07:40:19 am »
As the poll worker proposals 1.14.192, 1.14.194, and 1.14.196 have been voted active and got more support than the "do not change" worker proposals, some parameter changes will be made:

Global Settlement Protection will be applied to bitEUR.
MCR of bitEUR will be reduced to 1.6.
MSSR of bitEUR will be reduced to 1.02.

These changes will happen after  UTC 00:00 4th, June, 2019.

Every witness is requested to update the feeding script to apply the 3 change items as mentioned above, please do the job after UTC 00:00 4th, June, 2019 and finish before UTC 00:00 6th, June, 2019.

For more information about the poll for this change, please check

Stakeholder Proposals / [Poll] Modify bitEUR parameters
« on: May 26, 2019, 08:22:58 am »
Up to now bitEUR has poor liquidity.

I don't know whether bitEUR can grow up, but I believe we need to give bitEUR a chance, while both bitCNY and bitUSD have experienced changes on parameters, bitEUR also need similar change, otherwise bitEUR will have no chance to compete with bitCNY and bitUSD.

The first poll is on Global Settlement Protection implementation on bitEUR, reference Doc:

1.14.192   Poll-BSIP58-Apply GS Protection on bitEUR
1.14.193   Poll-BSIP58-Do Not Apply GS Protection on bitEUR

The second poll is on reducing MCR of bitEUR to 1.6, reference Doc:

1.14.194   Poll - BSIP59 - Reduce MCR of bitEUR to 1.6

1.14.195   Poll - BSIP59 - Do Not Reduce MCR of bitEUR

The third poll is on reducing MSSR of bitEUR to 1.02:

1.14.196   Poll - BSIP59 - Reduce MSSR of bitEUR to 1.02

1.14.197   Poll - BSIP59 - Do Not Reduce MSSR of bitEUR

Approvement on  "1.14.192 Poll-BSIP58-Apply GS Protection on bitEUR" is the precondition for the other 2 changes to be allowed.

Please vote according to your opinion.

As the poll worker proposal 1.14.181 has been voted active and got more support than the "do not change" worker proposal 1.14.169, MSSR of bitCNY will change from 1.02 to 1.01.

The change will happen after  UTC 00:00 22th, May, 2019.

Every witness is requested to update the feeding script to publish 1.01 as MSSR of bitCNY, please do the job after UTC 00:00 22th, May, 2019 and finish before UTC 00:00 24th, May, 2019.

For more information about the poll for this change, please check

General Discussion / Does it make sense to cultivate bitEUR?
« on: May 15, 2019, 03:10:56 pm »
actually I am always confused that we have a lot of members come from Europe, Europe community is an important community for BTS, but why bitEUR hasn't grown up?

do we really need bitEUR?

as bitCNY and bitUSD has been updated settings, if we need bitEUR to grow up and provide enough supply to users, we need also to set bitEUR parameters as bitUSD:

MCR: 1.6
market fee: 0.04%

but before doing that, we need to answer the above questions.

any thoughts from Europe community? 

General Discussion / Price Feed Review
« on: May 09, 2019, 04:59:06 am »
This thread is to replace

Feed Price is so important that we need some mechanism to review/audit it.

If anyone in BTS community find that some witnesses do bad in price feeding, please provide proof here to show to all, voters should also get information from thread and decide to support or not support which witnesses.

In bitCNY price feed, I'd like to emphasize one principle,which get strong consensus from China community: the price feed should not conflict with the DEX price plus an bitCNY premium/discount offset.


As the poll worker proposal 1.14.187 has been voted active and got more support than the "do not change" worker proposal 1.14.188, MCR of bitUSD will change from 1.75 to 1.6.

The change will happen after  UTC 00:00 13th, May, 2019.

Every witness is requested to update the feeding script to publish 1.6 as MCR of bitUSD, please do the job after UTC 00:00 13th, May, 2019 and finish before UTC 00:00 15th, May, 2019.

For more information about the poll for this change, please check

中文(Chinese) / bitCNY/bitUSD的进化
« on: May 06, 2019, 09:19:57 am »

















General Discussion / smartcoin evolution
« on: May 05, 2019, 01:39:45 pm »
plan to publish an article in some media to introduce the evolution of smartcoin, post here in advance for review, if any thoughts please share.


In 2013 BitShares introduced the concept of smartcoin, which is designed to track the value of fiat with BTS as collaterals to back the value, actually smartcoin like bitUSD or bitCNY is a service provided by the shorts to the longs. bitUSD/bitCNY is operated by creating an order book between those who wanted leverage on BTS and those who wanted price stability. To provide liquidity for those who purchased bitUSD/bitCNY, bitUSD/bitCNY holders were allowed to force settle the least collateralized short positions at the price feed plus an offset after 24 hours delay with limited amount. This created an effective margin call and assured buyers of bitUSD/bitCNY that their token was always worth about 1USD/CNY worth of BTS. The system also designed ways to handle bad debt, which has been global settlement but now it is global settlement protection.

Some key parameters can be adjusted to adapt to the market, they are:

MCR: Maintenance collateral ratio, it defines the least collateral ratio a debt position should have, if CR fall under MCR, margin call will be triggered, this parameter is maintained by witnesses.

MSSR: Maximum short squeeze ratio, the margin call orders will be forced placed at feed price/MSSR, it can be seen as penalty to margin called positions and reward to those who eat the margin call orders, this parameter is maintained by witnesses.

Force settlement offset: if define the fee that the smartcoin holders need to pay while issue force settlement. this parameter is maintained by committee.

In the past these parameters have been changed for several times, taking bitCNY as an example, MCR is changed from 1.75 to 1.6, MSSR is changed from 1.1 to 1.05 and then 1.02, force settlement offset is changed from 0 to 2%.

Another big change is the introduction of TCR(Target Collateral Ratio), with setting a TCR, while a debt position is margin called, not all the collateral will be placed in margin call order,   the order amount will be calculated out based on the logic that paying debt with the got smartcoin via the sold amount will increase the CR to TCR.

Core consideration on rule update

If we compare bitCNY with Maker DAI, we can find that DAI business has little impact on ETH price, and ETH has a big enough market cap to support DAI supply, on the other hand, bitCNY business has big impact on BTS price, and as BTS market cap is so low bitCNY can succeed only when BTS price have a big rise up.

In the past years Bitshares community experienced a lot short attacks, at the early time of BTS2.0, all the smartcoins were set MCR=1.75 and MSSR=1.1, TCR (Target Collateral Ratio) is not introduced yet, while the market is in down trend and provide good chance to shorts, shorts will sell BTS in large volume to speed up the down trend of BTS price to make margin call, if some big debt positions is margin called, all the collateral of the position will be sold at feed price/1.1, which will lead to further price fall and more margin calls, while the “death spiral”make disaster and BTS price has no space to fall further, the shorts that has accumulated big amount of smartcoins will come out to eat the big margin call orders, shorts benefit most while the whole BTS ecosystem is in huge disaster.

Even we suppose there is no shorting attack in bear market, the high MSSR will always speed up the down trend of BTS price, and prohibited the system to provide enough smartcoin supply.

what the system responded to crisis finally aggravated the crisis, the same story repeated in each market cycle,BTS become a game field that speculators enjoy but the ecosystem cannot grow up, BTS community has to answer the following questions:

How to resist shorting attack?
How to provide incentive for creating smartcoin supply?
How to respond to crisis?

In long time Bitshares follow the traditional risk control logic of traditional mortgage loan and leverage trading to ensure security, but essentially Bitshares is a stable coin issuing system, the key difference is that traditional mortgage loan and leverage trading system do not have the problem of base currency supply, which is the key issue of Bitshares smartcoin system, any rules that ignoring the base currency supply will not lead to success, any measure that pursue security via punishing margin call will not make sense.

Below shows the candle chart of BTS/bitCNY pair at UTC 1st May, 5:49, several days before BTS price has risen up to 0.52CNY and then returned to 0.32CNY after several big falls, at 30th April and 1st May it went up a little to 0.34CNY, at the time bitCNY has a premium of more than 5%, different than before, as MSSR has been reduced to 1.02, so the margin call orders(yellow orders) is at 0.3549CNY, 3% more higher than the top sell orders, in the past 3 days, these yellow orders just stayed there without any partly being eaten.
This “yellow orders highly placed” phenomenon have some effect: first, it make shorting attack more difficult, low MSSR lessen both the “death spiral”effect and the profit space of shorting attack; second, it lower the risk of borrowing bitCNY at low CR, because at this scenario even when a position is margin called there is also a high possibility that the margin call orders stay for long time without being eaten and disappear after the BTS price recover; third, this “yellow orders highly placed” phenomenon avoid the deflation of bitCNY.

In long time smartcoins lack a mechanism of encouraging creating supply in high premium scenario, but now I see possibility to build such a mechanism via MSSR, if we adjust MSSR to a suitable value, it can encourage smartcoin supply in high premium scenario and at the same time keep the possibility of bad debt low enough.

We can see currently bitCNY is in such a status, an about 4.8% premium encourage speculators to borrow with CR=MCR and buy more BTS, we can also see that bitCNY supply keep almost unchanged while BTS price fall from 0.4CNY to 0.32 CNY, the mechanism works. However according to observation, when BTS price rise up to about 0.5CNY, bitCNY premium will fall under 2%, and the encouraging mechanism will not work, if we need it to work at that price, we need an even lower MSSR.

So in my view, MSSR value selection depend highly on the market depth of the smartcoin, it is time for bitCNY to try a lower MSSR such as 1.01 and 1.02 is a low enough MSSR for bitUSD.

Bad debt handling

In the past months bitUSD has experienced global settlement and revived, bitCNY has also been at the edge of global settlemet but is protected by witnesses.

Global settlement(GS) is a bad way to handle bad debt, it is just like suicide, it collect all the collaterals into one global settlement pool and sell in fixed price, while none can borrow more smartcoins. When bitUSD is global settled, bitUSD holders are hurt as bitUSD is devaluated, debt positions with high CR are also involved unfairly, stop bitUSD borrowing makes it difficult for bitUSD to revive.

Comparatively, the core idea of GS protection is not allowing feed price to fall under GS price, this cannot be understood as simple “faked price”, actually it is “we try best to avoid bad debt, but if it really happen for some positions, we will keep the book value  of all positions not bad and wait for the market to solve it, while keep the borrowing feature continue and gs price can also go down while margin call orders are eaten or force settlement happen. Which minimize the devaluation of smartcoin”.

BSIP58 is implemented on bitCNY and bitUSD, the problem is it still depend on witnesses' operation, a better solution is to include the logic in the core code -  remove GS by not allowing feed price under GS price.

There is no way to completely avoid bad debt, what we can do is to minimize the possibility and the possible harm to all the parties in the market.


To cultivate smartcoin ecosystem, we need to include reasonable incentive in the rules, which will make BTS longs get advantage in the long-short game when smartcoin is in obvious premium.

MSSR will be reduced toward 1 step by step, to ensure the incentive to BTS longs and good pegging. this will limit the premium of smartcoin. this will also provide solid support to BTS price in bear market when smartcoin is in high premium.

Force settlement will limit the discount of smartcoin.

to be continued...

Stakeholder Proposals / [Poll] BSIP59:Reduce MCR of bitUSD to 1.6
« on: May 01, 2019, 02:26:21 am »
Based on BSIP59,, now 2 poll worker proposals have been created:

1.14.187   Poll - BSIP59 - Reduce MCR of bitUSD to 1.6
1.14.188   Poll - BSIP59 - Do Not Reduce MCR of bitUSD

The purpose of this change is to improve the liquidity and also the peg, at the time while bitUSD is in great shortage and premium.

The MCR of bitCNY has already been reduced from 1.75 to 1.6 and worked well up to now, it's also necessary to set MCR of bitUSD as same as bitCNY, otherwise more users would like to select to borrow bitCNY to lessen the liquidity of bitUSD。

Please vote according to your opinion.

As the poll worker proposal 1.14.174 has been voted active and got more support than the "do not change" worker proposal 1.14.175, and the protocol upgrade to 3.0.1 has been done successfully, MCR of bitCNY will change from 1.75 to 1.6.

The change will happen after  UTC 00:00 28th, April, 2019.

Every witness is requested to update the feeding script to publish 1.6 as MCR of bitCNY, please do the job after UTC 00:00 28th, April, 2019 and finish before UTC 00:00 30th, April, 2019.

For more information about the poll for this change, please check

Stakeholder Proposals / [Poll] BSIP59:Reduce MSSR of bitCNY to 1.01
« on: April 16, 2019, 06:04:35 pm »
As MSSR values, 1% and 2% are different at:

1. 1% will lead to better pegging at time while margin call price impact the expectation on BTS price.

2. 1% reduce the benefits of shorting BTS in half.

3. lower MSSR will make the margin call orders a little more difficult to be eaten. and may lead to some risk accumulation.

Please find BSIP59 Doc: for detailed info of BSIP59.

Two worker proposals have been created for this poll:

1.14.181   Poll - BSIP59 - Reduce MSSR of bitCNY to 1.01

1.14.169   Poll - BSIP59 - Do Not Reduce MSSR of bitCNY

please consider the 2 choices carefully before you vote.



As 1.14.169 expired, a new WP is created to replace it:

1.14.191   Poll - BSIP59 - Do Not Reduce MSSR of bitCNY to 1.01

If you are against to reduce MSSR of bitCNY to 1.01, please vote 1.14.191

I open this thread and poll to provide a place for community to express their opinion on bitCNY price feeding.

good price feeding is so important, without it we cannot make bitCNY pegged well enough, and cannot convince users that BTS is a dependent financial system.

I hope that anyone vote here can at the same time provide proof and explanation on your selection.


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