Author Topic: Yield question  (Read 4789 times)

0 Members and 1 Guest are viewing this topic.

Offline monsterer

Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?

The yield comes from the short position I think. So you would not make any money at all doing this.

Read the OP :)
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline islandking

  • Sr. Member
  • ****
  • Posts: 378
  • The king of the island
    • View Profile
Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?

The yield comes from the short position I think. So you would not make any money at all doing this.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

Offline starspirit

  • Hero Member
  • *****
  • Posts: 948
  • Financial markets pro over 20 years
    • View Profile
  • BitShares: starspirit
All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?
The short has to compete on interest, so to guarantee getting set there could be a net cost.

Offline monsterer

Nothing, but you would not gain anything from that. Its like going long and short. 0% change.

Yield?
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline islandking

  • Sr. Member
  • ****
  • Posts: 378
  • The king of the island
    • View Profile
All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?

Nothing, but you would not gain anything from that. Its like going long and short. 0% change.
I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. - Satoshi

Offline monsterer

All interest paid by all shorts is shared by all USD equally.

What's to stop someone from taking both sides of the trade, shorting and buying into their own short, essentially entering into a 100% hedge which pays yield with no risk?
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline biophil

  • Hero Member
  • *****
  • Posts: 880
  • Professor of Computer Science
    • View Profile
    • My Academic Website
  • BitShares: biophil
Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?

The interest is paid when the short covers, and it just gets put into the pool that all other bitAsset fees go into.
Support our research efforts to improve BitAsset price-pegging! Vote for worker 1.14.204 "201907-uccs-research-project."

Offline bytemaster

Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?

All interest paid by all shorts is shared by all USD equally.
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline monsterer

Does yield on a bitAsset purchase come from the interest paid by the short on the other side of the trade - and therefore stop being paid when that short covers?
My opinions do not represent those of metaexchange unless explicitly stated.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads