More than 1 year ago, I have suggest a open market operation worker proposal and get it voted up, a fund get BTS from worker proposals has been built and operated for months, unfortunately, in the great bear market the fund experienced big failure, big amount of BTS were sold in low prices comparing to bought price due to margin call, the OMO failed to play the role of market stabilizer.

In early this year, I also have suggested to restart the OMO fund but get little support, However, currently, I feel even more necessary to restart the OMO operation, I understand that the failure in previous OMO will make me difficult to get sufficient support on doing so, anyway, I'd like to start a serious discussion on the possibility of restarting the OMO fund and reach consensus on the key setting of the new OMO fund, it's OK for me to be excluded out of the operation team. the important thing is to make the new OMO work well and can really help the ecosystem to grow.

why we need the New OMO fund? what's the mission of the New OMO fund?

In China in the past months, we can feel that investors kept on leaving BTS, as BTS behaved bad in market.

China community has suggested to repurchase and burn BTS, this process is ongoing, this reflected how eager the community want BTS price to go up, however, I don't think it's a good idea to burn the bought BTS, why don't we manage a debt position with the bought BTS and supply more smartcoin to the market?

Why don't we show to public that it's possible to manage a debt position well, especially with continuous income?

Recently cn-vote took an action to vote refund400k, this action make several big workers voted down and lose the income, either this action is good or bad, I understand why there is always high voice in China community to cancel some workers, BTS ecosystem is so weak at this moment and the selling pressure from workers always play a big role in pressing down the BTS price, we need to find ways to make BTS ecosystem more robust. 

Comparing to burning BTS, another way to support the ecosystem is to put more BTS into debt position and release more smartcoins to the public.


what shall we learn from previous OMO fund?

I admit that as the key organizer of the previous OMO fund I have some unfeasible idea at that moment, I have hoped that OMO can provide a strong sustain to BTS price, but the market told that no one can counter with extreme market trend, even you have hundreds of millions of BTS.

another key factor is that, at that moment, smartcoin rules is not robust enough to resist shorting attack. that's why I tried my best to push GS protection and MSSR&MCR reduction after the disaster.

now smartcoin is more rubust than before to resist shorting attack, although the GS protection still depend on witnesses' work.

what a strategy is suitable?

the fund will manage debt positions and focus on BTS/smartcoin trading.

at this moment, the fund need to focus on BTS/bitUSD trading.

two price are defined to differenciate the current market status.

price A: BTS is underestimated if price<A
price B: BTS is overestimated   if price>B

1.the debt position margin call price should be always less than GS price, otherwise, the incoming fund can only be used to increase the CR.
2.margin call price should always < A.
3.while price < A, it's not allowed to sell BTS.
4.while price > B, it's not allowed to buy BTS.

to get A & B at this moment.

first suppose that 0.2175CNY is the long term bottom price.

for underestimated price I'd like to define like this:

0.2175*MCR = 0.348 CNY.
in USD, it should be 0.0455USD

which means, if the price is underestimated, if you borrow with setting your margin call price < GS price, you have no worry for margin calling.

top price in the last 9 months is 0.5377CNY

overestimated price = 0.5377/1.05 = 0.512CNY, or 0.073USD.

A=0.0455USD, B=0.073USD

A&B can be adjusted in long run.

how to organize the operation team? will the operation team be paid?

I suggest to operate with a 2/3 or 3/5 multisig account, the members should be the ones who are trusted by the committee.

every quarter the fund will be calculated net worth based on BTS. 50% of the profit will be paid to the operation team.


threads of previous OMO fund:
https://bitsharestalk.org/index.php?topic=26072.0
https://bitsharestalk.org/index.php?topic=26107.0
https://bitsharestalk.org/index.php?topic=27790.0

relevant threads:
https://bitsharestalk.org/index.php?topic=27835.0
https://bitsharestalk.org/index.php?topic=28706.0

I tested this with new created account vesting-tester.

the member stats is like this

Fee Allocation

Network   20%
Lifetime Referrer   (bitcrab)   30%
Registrar   (gdex-faucet)   25%
Affiliate Referrer   (bitcrab)   25%
Membership Expiration   N/A

then I use this account to buy 10000 GDP, GDP has a 0.1% market fee, and 50% market fee sharing. which means in this trade there are totally 5 GDP shared.

I saw bitcrab get 2.5 GDP, gdex-faucet get 2.5GDP

what's the rule in this fee sharing? registrar get 50% and referrer get another 50%?

Based on BSIP59, https://github.com/bitshares/bsips/blob/master/bsip-0059.md, now 2 poll worker proposals have been created:

1.14.210   Poll - BSIP59 - Reduce MCR of bitUSD to 1.5
1.14.211   Poll - BSIP59 - Keep MCR of bitUSD as 1.6

We have to save bitUSD.

bitUSD is in illiquidity for long time, partly because the black swan hurt its brand seriously, partly because now bitCNY is in good liquidity and pegging so even less traders would like to trade in bitUSD.

However, we need to find ways to change this, to make bitUSD still play an important role in BTS financial ecosystem.

To reduce MCR of bitUSD to 1.5 will reduce the cost to mint bitUSD, hopefully this will attract users switch from CNY market to USD market, as MCR of bitCNY will be kept as 1.6 at the same time.

On the other hand, GS protection for bitUSD already worked to avoid the risk of black swan.

Please vote according to your opinion.
----------------------------------------------------------------

智能货币的三个状态：

A:随爆随吃
B:黄单高悬
C:黑天鹅防护

bitCNY现在大部分情况下处于A状态，少量时间处于B状态，基本不进入C状态，比较健康。
bitUSD现在大部分情况下处于B状态，BTS价格较高的少量时间处于A状态，进入C状态的概率比较大，比较不健康。

Alt这类用户属于典型的低风险偏好型，有明显的尽量减少负债囤积智能货币的倾向，bitUSD供应量一直难以增加，加上bitCNY好得多的市场深度和活跃度更能吸引用户，如没有相对有力的措施，bitUSD将难以摆脱困局，这对整个生态是非常不利的。

bitUSD的黑天鹅防护已经生效，当前，通过降低MCR来促进bitUSD供应显得更加可行。

Proposal 1.10.38714 is created to set force_settlement_offset of bitCNY to 1%. the proposal will expire in UTC 18th, July, 00:00

To do this is based on below considerations:

1.the feed price quality is obviously better than before.
2.bitCNY is in obvious discount, A lower offset can help to limit the discount.
3.other smartcoins, like bitUSD&bitEUR, all have a force settlement offset of 1%, it make sense to set same force settlement offset for them.

Committee members, please check and vote according to your opinion.

unlocked >>> get_object 1.10.38714
[{
    "id": "1.10.38714",
    "expiration_time": "2019-07-18T00:00:00",
    "review_period_time": "2019-07-17T23:00:00",
    "proposed_transaction": {
      "ref_block_num": 0,
      "ref_block_prefix": 0,
      "expiration": "2019-07-18T00:00:00",
      "operations": [[
          12,{
            "fee": {
              "amount": 12650000,
              "asset_id": "1.3.0"
            },
            "issuer": "1.2.0",
            "asset_to_update": "1.3.113",
            "new_options": {
              "feed_lifetime_sec": 86400,
              "minimum_feeds": 7,
              "force_settlement_delay_sec": 86400,
              "force_settlement_offset_percent": 100,
              "maximum_force_settlement_volume": 50,
              "short_backing_asset": "1.3.0",
              "extensions": []
            },
            "extensions": []
          }
        ]
      ],
      "extensions": []
    },
    "required_active_approvals": [
      "1.2.0"
    ],
    "available_active_approvals": [],
    "required_owner_approvals": [],
    "available_owner_approvals": [],
    "available_key_approvals": [],
    "proposer": "1.2.121"
  }
]


1. core team discussions

2. marketing WP https://bitsharestalk.org/index.php?topic=28444.0

3. GS protection (updated BSIP58, protection is guaranteed by core code)
4. BSIP62：close short position https://github.com/bitshares/bsips/issues/156
5. BSIP40：Custom active permission https://github.com/bitshares/bsips/blob/master/bsip-0040.md
6.committee work organization.

7. BSIP70: Lending for Margin Tradinghttps://github.com/bitshares/bsips/issues/170
8. mobile App WP. https://bitsharestalk.org/index.php?topic=28460.0
9.GXC&BTS cooperation.
10.smartcoin marketing/ZBG
11.cn-vote

This proposal is to replace 1.14.200 https://bitsharestalk.org/index.php?topic=28508.0

I agree with what the China BTSer Union suggested, https://bitsharestalk.org/index.php?topic=28549.0, BTS is now obviously under estimated in the market, we need to introduce more money to increase BTS holdings.

I think currently it's a good idea to use the accumulated bitCNY market fee to buy BTS, and this measure can be combined together with the left OMO issue.

1. now account committee-cnytrader owns a debt position of 451K CNY debt and 3.9M BTS collateral,  reorganize account committee-cnytrader, let the representative from CNY BTSer Union to replace witness-still,  committee-cnytrader will handle the task of buying BTS using the bitCNY market fee.

2.each time the accumulated bitCNY market fee is above 100K CNY, claim it and transfer to the cnytrader account, when BTS price is under 1CNY, the multisig members will decide the process to buy in BTS.

3. when the BTS price is above 1CNY, multisig members need to sell some BTS to pay the debt, and also accumulate bitCNY for the next down trend.

A poll worker proposal is created for this:

1.14.205   Poll - increase BTS holdings with accumulated market fee

please vote this proposal according to your opinion.

Three committee proposals are created to update bitCNY, bitUSD and bitEUR.

1.10.34553 set bitCNY reward percent to 80%, market fee to 0.1%.

1.10.34555 set bitUSD reward percent to 80%, market fee to 0.1%.

1.10.34565 set bitEUR reward percent to 80%, market fee to 0.1%.

All the three proposals will expire at 2019-7-1 00:00:00 UTC.

The 80% reward percent and 0.1% market fee can help to

1.generate enough incentive for referral.
2.add more value to LTM, as LTM will actually need only to pay 0.02% fee and have chance to get good referral reward.

and at the same time, 0.1% is not too high a fee rate, it is still a normal exchange fee rate.

Committee members, please check and vote according to your opinion.

forum discussion:
https://bitsharestalk.org/index.php?topic=28517.0