Author Topic: Gateway Iiquidity  (Read 754 times)

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Offline well.attenuated

Gateway Iiquidity
« on: November 06, 2015, 10:50:20 pm »
There was a thread that was already discussing but I searched and searched and can't find it so sorry for starting another one.

There is a lot of talk about how to support the price of BTS on outside exchanges, volume within the DEX, and many ideas about how to increase liquidity - mainly revolving around fees and how to attract day-traders to extract fees from them while still making them feel welcome.

The problems with using UIA as on-ramp gateways into the DEX (currently) is that those UIA are not fungible with bitBTC. As BM stated in today's mumble, given enough liquidity, UIA representing bitBTC will become fungible due to arbitration - this is true but only once bitBTC is available enough to fill those markets - currently it is waaaaay too rare.

People are discussing buying BTS on margin on poloniex over in the speculation board - if you want to support BTS.... short BTC - make bitBTC within the DEX.

This is the same net long position ( +5%), fees stay in our ecosystem ( +5%), and it works toward solving one of our biggest problems ( +5%).  Once more bitBTC is out there (we need TONS) it will find its way onto the order books of bitBTC:openBTC and bitBTC:BTS and bitBTC:metaBTC etc etc.  We need all these books filled and don't need traders to do it - we need the underlying asset to exist or it's impossible. Day traders won't be creating bitAssets anyway, they will be buying and selling once already out there so they can cover their positions easily when they want to exit.  All the day traders in the world are not going to materialize the bitBTC we need to make the markets function properly.

Right now the current price of 1bitBTC:BTS is 115600 while tradeBTC:BTS is 62500, this is ridiculous.  If you want to use your BTS to support the ecosystem, don't leverage it out for the chance of pumping a value on an external exchange with the risk that a whale is going to come along, clean you out, force you to call, you loose your BTS and the price gets hammered even further down - just make some fresh bitBTC within the exchange, or bitOIL, or bitANYTHING.
« Last Edit: November 06, 2015, 10:56:39 pm by well.attenuated »
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Offline Ander

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Re: Gateway Iiquidity
« Reply #1 on: November 06, 2015, 11:24:03 pm »
Margin trading doesnt really support the price long term.  It temporarily increases it for a time in the short term and then decreases it when you cover the position.

Buying and holding supports the price.
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Offline monsterer

Re: Gateway Iiquidity
« Reply #2 on: November 06, 2015, 11:41:20 pm »
bitBTC will never trade at parity with BTC while the risk of being short far outweighs the risk of being long.
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Offline Samupaha

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Re: Gateway Iiquidity
« Reply #3 on: November 07, 2015, 10:36:04 am »
I think most important thing right now is just to get any kind of trading to the DEX. UIA's are good way to get things going because they don't have much risk. Of course there is the counterparty risk but Openledger and Tradeblocks seem to be quite trustworthy.

And we have to remember that bitBTC doesn't have much use cases outside the DEX. Why would anybody use it when they can use real bitcoins?

Instead of bitBTC we should be providing liquidity to bitUSD/EUR/CNY markets. Every one of those is usable on their own – they are just like normal fiat currency (what comes to value), but they work in a super fast global network without any restrictions from governments or banks!