@biophil:

1. The MCR/MSSR parameter is only a small part of the equation. Before we can optimize these parameters, we need to define and design the system first.
2. Optimization of MCR/MSSR already happened and with the current system we don't have any real edge by tuning these parameters further.
3. Simulations are used, when there is

• no understanding how the system works -> not the case
• no live data available -> not the case
• need to improve parameters -> already improved

4. What BitShares need is to implement new market mechanics. For MCR/MSSR this is a back tested algorithm (AI), which tries to minimize:
- System risk
- MCR
- Premium

A question back to you: How do you know that 1.5 and 1.01 are the sweet spot? Why not 1.2 and 1?

Because we had 1.5 CR for bitUSD after the second price drop.

my question is, why? why do you suppose 1.5 is the lowest, why do you know a lower MCR cannot be better?

MCR should be as low as possible and only as high as needed. Without improved market mechanics/liquidity, I see no room to go any lower than 1.5.

The committee should only set the weight distribution for system risk, liquidity and premium. The back tested AI algorithm tries to minimize the sum.

There are two main questions, how we can valuate our workers:

1. Does the worker increase the BTS price in the next 6 month?

2. Does the worker solve one of our main problems?

- Marketing
- Integration
- UI
- Liquidity
- Gateways
- Price feeds


On the one side 201907-uccs-research-project does create a problem, where there is actually is no problem, but doesn't solve any of our real problems.
The BitShares community is already aware MCR = 1.5 and MSSR = 1.01 is the sweet spot.

On the other side there will be no extra demand of BTS, because someone did a research on MCR/MSSR. This is not how demand works.
Voting for this research worker, is throwing BTS out of the window!

We already lost some community members, because of bad worker spendings. The uccs-research-project is the worst worker!
Now is not the time for research, but it is time to take actions and change things!

Sounds interesting, can you provide a link?

When does OMO fund start?

I am pro research (0.5 year), but why should we finance a student and travel costs?

The worker already has 15k $ and it is unclear, which benefits the community gets from the worker.

One solution is here with the settlement fund: https://github.com/bitshares/bsips/issues/182
(Time to respond to my BSIP)
 
The main problem BTS has, is the deficit spending by overpriced workers, which dump BTS and don't bring any real value to the ecosystem.

Rewrote Referral System topic and list Steps for integration in two stages.

The integration in two stages ensures the margin call fee has no negative impact on the market.

Quote from: bench on August 12, 2019, 10:43:48 am

Quote from: bitcrab on August 12, 2019, 10:33:46 am

I agree that margin call trading charge the same market fee(with also market fee sharing) as usual trading, disagree to charge additional "penalty fee" to shorters.

If we charge 0.2% margin call fee and reduce MSSR by 0.1% the effective fee is still 0.1%, like the normal market fee. No additional penalty.
I don't see a reason to give the LTM a advantage on the margin call fee and reduce the income on the reserve pool.

difference, your 0.2% solution means the seller paid additional 0.1% fee to issuer.

You are right, if we don't change MSSR. Reducing MSSR by 0.1%, the seller does only pay 0.1% extra.

Problem
At the moment margin call fees are only present with the MSSR. The margin call doesn't pay any market fees, like regular selling on the bitAsset market.
The MSSR is a penalty, which does only benefit the buyer of the debt and not the BitShares ecosystem.

Solution
Introducing a 0.2% margin call fee for everyone and reducing the MSSR by 0.2% results in a effective fee of 0%.

Referral System
Including the margin call fee in the referral system does mostly support third parties or LTM and not the BTS price/demand in the first place. 
On the other side everyone should be equal on the margin call side.

To increase the house edge from 20% significant (@xeroc), without sabotage the referral system, we need to take here 100% to burn BTS.
Everything else does not have a real impact or makes much sense.


Steps for integration (bitCNY)

Stage	MSSR	MC-fee	Penalty
0	1.01	0%	1%
1	1.009	0.1%	1%
2	1.008	0.2%	1%

Steps for integration (bitUSD)

Stage	MSSR	MC-fee	Penalty
0	1.02	0%	2%
1	1.019	0.1%	2%
2	1.018	0.2%	2%

Conclusion
Not having a reasonable fee for margin call to burn BTS, is one of the biggest leak for BitShares ecosystem and should be changed as fast as possible.

Reducing MSSR and increasing MC-fee by the same amount has a neutral effect on the debt penalty.


Sources
https://github.com/bitshares/bsips/issues/164