I'm sure the info is available somewhere, but I'm too lazy to go searching... :-/ Nevertheless, I'm seriously interested in answers to the following questions:

1. What is the economic sense in an asset that has a fixed exchange rate to USD? Why should anyone not simply use USD instead?
2. Where does the "magic" value 2.7 stem from? Is there an economic reason for that value?
3. Can we be extremely sure that this value is not going to be redefined in the future?
3.a If we can't, we should have a plan how to handle such changes. Preferrably come up with a plan before creating the asset.
3.b If we can be sure, see question 1.

1. pegging with a powerful fiat is one of the ways of fiat design, HKD is also such kind of fiat, why HongKong government does not directly adopt USD or GBP but issue HKD instead? it's not easy to summarize but it make sense. if we would like to push CFTZ to come into Bitshares world, bitXCD is a better key that we can give to them than bitUSD.

2. officially defined.
3. not 100% sure, but 99.99% sure.
3.a if in future XCD relax peg to bitUSD, one choice for us is to create another smartcoin which peg to XCD but backed by BTS to replace bitXCD

and if we create bitXCD which peg to USD in a fixed rate, we are actually helping XCD.

there is an smartcoin KITTY.CNY which is backed by CNY in mainnet, it can be fed price in CNY and can be borrowed, but the force settling feature is disabled so not able to test.

due to the too short time setting the last proposal is not approved, in this period some suggestive ideas emerged and it seems we need to consider more on the back asset selection.

below is the XCD/USD rate chart in last ten years, we can see that from 2011 the rate is fixed to 0.37037 USD/XCD with some minor fluctuation.



the design logic/purpose of XCD(not bitXCD) is to peg USD, if we create bitXCD which has a fixed rate to bitUSD, it would be great, right?

I tried to set a newly parameter as below after went through all the ideas about it.

MAXIMUM SUPPLY 100,000,000,000
Precision 4
Feed lifetime   1year #to make a 'static' price
Minimum feeds   7
Force settlement delay   10 min #to enable instantly USD/XCD conversion, should be as short as possible
Force settlement offset   0.3%   #with the fixed rate shorters have little risk, so the 'service fee' should be low.
Max force settle vol   5%          # need to be larger than other BTS backed smartcoins
Short backing asset   USD

and, witnesses need to feed as below:

1XCD = 0.37037 USD
MCR:100.1%  #should be higher than but close to 100%
MSSR:100.5% #even when margin call happen, shorters will lose little.

any ideas on this?
and, this solution is not tested yet, is it possible to do the test in several days to ensure it is bug free?

proposal created and is waiting for approval:
https://cryptofresh.com/p/1.10.6006

witnesses please prepare the price feeding for bitXCD, with the assumption that 1USD=2.7XCD.

the key point is the price feeding.

up to now we can still see that the settlement price is always 3-5% lower than latest price.



this does not happen in bitUSD/BTS market.

from Magicwallet data we can know that bitCNY peg CNY well, bitCNY is not cheaper than CNY.

so the problem is still in price feeding, the force settlement offset can be reduced only when the fed price can trace the market price well enough.

Quote from: bitcrab on December 12, 2017, 02:24:38 pm

Quote from: abit on December 12, 2017, 01:57:03 pm

Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?

Witnesses can feed a static price against base(USD). May still need to feed dynamic CER.

By the way, perhaps there are bugs about non-BTS backed assets, last year I've been playing with KITTY.CNY and remember there are some issues. Best make some tests on testnet first.

then how much bitUSD need to be put into collateral to generate 2.7bitXCD? 1? so MCR need to be set to 100%, MSSR also 100%?
is there any risks? and what's the pros of this way?

I understand the pros of this way, when one like, he can easily convert his bitUSD to bitXCD(by borrowing) and vice versa(by force settlement or close position), no need to cultivate USD/XCD market.

then it will be better to set the DELAY FOR FORCED SETTLEMENTS to a short period to enable users to do the conversion instantly.

but if there are issue in price feeding there will be risks, if there is option to fix the settlement price then this is a perfect way.

in the past several months I have met Mr. Zheng Xiaojun several times, he is the board member of the Caribbean Free Trade Zone and is very interested in blockchain application. we discussed a lot about the possibility on creating one blockchain currency to solve a lot of problem generated in this area as the finance service there is far from developed.

I introduced Bitshares smartcoins to him and finally he agreed that this is a great solution to solve the problems in payments, exchange in that area. he would like to cooperate with Bitshares community to issue bitXCD and make it wildly used.



XCD is the symbol of Eastern Caribbean dollar, which is designed to peg USD at the rate 1USD=2.7XCD, more detail of XCD can be found here: https://en.wikipedia.org/wiki/Eastern_Caribbean_dollar

I suggest we create bitXCD soon to open a big area for smartcoin.

Mr. Zheng(left 4) and his team with Prime Minister of Dominica and other government officials


Mr.Zheng and his team with Prime Minister of Saint Lucia


Mr.Zheng is also the lead of World Blockchain Organization and Caribbean Institude of Block Chain Industry.

Quote from: bitcrab on November 28, 2017, 07:35:10 am

Quote from: sahkan on November 28, 2017, 06:06:55 am

I can also do a pull request to have your access node added (wss://ws.gdex.io) to bitshares-ui if you are ok with it?

please don't, this node is planned for GDEX use only to ensure quick processing without jam, later we will build some other nodes for public use.

OK, no problem.

we now have built an API server wss://ws.gdex.top for public use, please add this to bitshares-ui access nodes list. @sahkan