Will bitassets in 2.0 Still Earn Interest?

Started by cylonmaker2053, July 15, 2015, 02:18:06 PM

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cylonmaker2053

Quote from: xeroc on July 15, 2015, 02:29:35 PM
Quote from: cylonmaker2053 on July 15, 2015, 02:18:06 PM
Can someone please provide a definitive answer?
in short: no .. not directly on just being long on an MPA ..
there is an alternative though which was highlighted by stan

will we still be offering bitUSD? if so, how will it be created? same process of matching long and short traders?

cylonmaker2053

Quote from: Stan on July 15, 2015, 02:23:00 PM
Quote from: cylonmaker2053 on July 15, 2015, 02:18:06 PM
One of the biggest reasons to own bitassets, like bitUSD, is because they earn higher than typical banking interest rates. Is this feature going away in 2.0??? If so, this is a big mistake and kills a venture concept i've been developing that'd market bitUSD to the public as a savings alternative.

Can someone please provide a definitive answer?

This is the more flexible alternative in 2.1 
https://bitshares.org/technology/collateralized-bond-market/

Will this fit your business model?

honestly, not sure. the key to scale in financial markets is standardized contracts, which is what we have right now with bitUSD, for instance. each contract is the same in structure, just diff in interest rate, which is basically the price of the contract. are these bond instruments going to be individually offered wrt size, interest rate, maturity date, or other terms?

i'm also skeptical of the collateral arrangement. instead of mechanically locking up fixed collateral on the blockchain with simple settlement rules, we're now going to be dealing with options to buy collateral--like put options--at a fixed strike? what if the counterparty can't deliver at the higher price in the event of collateral asset meltdown?

i loved the bitUSD concept as being akin to a money market that could have broad uses as savings instruments, cash management for firms, potential commercial paper instruments, etc.

forgive my skepticism here, i was just getting excited about the soon-to-be-retired products. hopefully the 2.0 stuff is better, but i'm not yet convinced. i thought 2.0 was about a tech upgrade to the platform, not a fundamental restructure to core products.

xeroc

Quote from: cylonmaker2053 on July 15, 2015, 02:18:06 PM
Can someone please provide a definitive answer?
in short: no .. not directly on just being long on an MPA ..
there is an alternative though which was highlighted by stan

Stan

Quote from: cylonmaker2053 on July 15, 2015, 02:18:06 PM
One of the biggest reasons to own bitassets, like bitUSD, is because they earn higher than typical banking interest rates. Is this feature going away in 2.0??? If so, this is a big mistake and kills a venture concept i've been developing that'd market bitUSD to the public as a savings alternative.

Can someone please provide a definitive answer?

This is the more flexible alternative in 2.1 
https://bitshares.org/technology/collateralized-bond-market/

Will this fit your business model?
Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

cylonmaker2053

One of the biggest reasons to own bitassets, like bitUSD, is because they earn higher than typical banking interest rates. Is this feature going away in 2.0??? If so, this is a big mistake and kills a venture concept i've been developing that'd market bitUSD to the public as a savings alternative.

Can someone please provide a definitive answer?