Quote from: GChicken on September 17, 2015, 01:53:12 am

I would also like to know the answer to the question posed above, i guess if no
liquidity available for BitBTC i guess CCEDK could short to them selves but this
would obligate them to cover short within 30 days which could mean they have to
roll over shorts again.. i guess... would mean less Bitshares available on the
market as they would get tied up in collateral on the blockchain.

No 30 day expiration in BitAssets 2.0. They only need to put collateral and
maintain enough collateral to never get margin called.

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My Question is similar, if Altcoin trading is available via UIA this would mean
the underlying Altcoin would need to be held somewhere in order to honor the off
ramp (once you want your actual underlying altcoin back you trade your UIA to a
gateway in exchange for the altcoin it represents) meaning that solvency would
not be as visible as i first imagined given the altcoin's that the OpenLedger
network UIA represents will be in a separate blockchain and only represented by
a UIA on the Open Ledger network. further more what if the wallet holding the
altcoin is compromised?

You are correct. But I don't think many altcoins will come. Those that will be
available in OL should certainly be put into multisig coldstorage (which is btw,
not even supported my some shi*** altcoins)

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I feel like a must be missing something here and hope someone has a explanation
of the internals or some more in depth documentation of how this is working in
the backend. Don't get me wrong i love the idea but want to see how me holding
my own keys protects me from goxxing for non MPA as my keys only hold a UIA
which rely's on someone to exchange for the underlying actual asset

The problem is manifold:

Since the main purpose of a gateway is to exchange FIAT into bitFIAT, you can
have two ways, either exchange them directly, which would require the exchange
to hold bitFIAT in their reserves (no big deal with multisig corporate accounts)
and FIAT in the bank accounts (shouldn't be a big problem either, banks are
considered 'safe').

The other approach would be to issue IOUs for everything you trade on the
blockchain. Hence you send USD, and get OL.USD into your wallet and can trade
them anywhere. The exchange could make use of their extra powers over the IOU to
hold markets or withdraw stolen funds ... anyway, this approach is less consumer
friendly since you need 2 hops to get the asset you want: USD -> OL.USD ->
bitUSD.

Nice Presentations!

Unlike most exchanges, you control your own private keys, so funds remain yours even when you’re trading with them. No one can reverse a transaction or freeze your account. Similarly, the exchange’s funds are all on the blockchain, totally transparently - so they can be audited by anyone, any time.