Basket MPA

[21xhipster]

if you need assistance of technical nature to do this, please drop me a line.

I like the idea very much but hesitate to do it my self for legal concerns in my country

Recently we've finished a work on parsing aggregated and high quality market feed for 24 crypto exchanges. http://45.55.24.178/api/markets
There will be an API and the feed itself is open source (unlike Coinmarketcap data). Hope soon we integrate it in cyber•Fund app.
But basically that is mean that now we can and interested in creating investment products very similar to how this guys do https://www.motifinvesting.com/motifs but for crypto.

The first product we'd wanted to create is a basket of "blue chips" based on our rating. Please don't confuse it with an old static one :-) Those was just a starting point. The new is really comprehensive and give interesting results. Look for youself https://cyber.fund/tracking (need to be sorted by rating and not NedoRating). It effectively filter all crypto crap and sort (though some points in methodology are still should to be improved) the most interesting blockchain projects. We can create MPA based on a basket of TOP-5, TOP-10, Top-20 assets based on this foundation. To be honest I didn't think how to compute it yet, but that is just a task.

But to plan this implementation I should answer some questions:

• What is fee for creation of MPA? (did not find it anywhere)?
• Can I setup fee for transactions involving my MPA?
• How to motivate witnesses to support price feeds for my MPAs? or do I need to become a witness?
• How do you think how much liquidity initially we need to put into such MPA?
• And of course how do you think is there demand on such MPA out where or not?

Could you help to answer?

Update: Clarifications and typofixes

[yvv]

Here is one suggestion: bitCPI, pegged to Consumer Price Index (https://en.wikipedia.org/wiki/Consumer_price_index). Long term holders of bitCPI would be able to buy the same amount of basic goods during their retirement as they can buy today (in US prices).

[yvv]

Basket would propably have to have precious metals, index funds, bonds and maybe some currencies. I'd really like to see opinions on this from people who have actually researched the subject.

Just select one of these indexes and peg MPA to it:

http://etfdb.com/compare/volume

All of these indexes are composed by skilled economists to be attractive investment instruments for different types of investors. Their volume show their attractiveness to customers. It is unlikely that you can come up with a new index which will beat these top 100.

Also very important question: do you think there is enough demand for this MPA? Would people be willing to short and trade it so that it's worth creating?

Creating a motivation for issuing MPA on bitshares is a difficult task. Asset creator has to take a risk to invest into spinning up the market. But, the ability to invest into index following funds can be sold as a unique feature of bitshares, since afaik none of other cripto exchanges have such an option.

[Samupaha]

Just forget the legal issues for now. And also, forget currency-only baskets, especially cryptocurrency. Those are not good baskets for long term savers.

Basket would propably have to have precious metals, index funds, bonds and maybe some currencies. I'd really like to see opinions on this from people who have actually researched the subject.

Also very important question: do you think there is enough demand for this MPA? Would people be willing to short and trade it so that it's worth creating?

[yvv]

But first things first: what to include in a basket?

Check out the most popular ETFs on the market. You could mimic them with MPA. Not sure how this will work though. The problem is that ETF issuers back them with real assets, and MPA is backed with BTS collateral instead. Not sure what technical and legal issues this can bring.

[xeroc]

check: Special Drawing Rights

[Akado]

What about a basket of cryptocurrencies, it certainly wouldn't have any issues with the law

[Samupaha]

I'm little bit interested in doing this myself and I don't have much respect for authorities so I don't care how legal it is.

But first things first: what to include in a basket? I have no idea what would be the optimal formula.

And maybe we should also discuss if this should be privatized MPA or blockchain issued. What are the benefits and downsides?

[xeroc]

tell BaFin you want to publish a price for an asset and see what happens .. I dont know for sure but i know that i will neither invest my time nor my money to find out

[fav]

I read this from time to time, but why are people concerned about legality? We're on a decentralized exchange, and unless you need your real world name/company attached to it, no one can sue you. I guess you won't need anything that could hurt your anonymity  to make  basket?

you could use https://1broker.com/ for example

[xeroc]

if you need assistance of technical nature to do this, please drop me a line.

I like the idea very much but hesitate to do it my self for legal concerns in my country

[Samupaha]

Has anybody made any plans on creating a basket of commodities, stocks, bonds and/or currencies that could be made to an MPA? I've been thinking that now might be a good time to do something like that.

It would be targeted to anybody who wants to save on an asset that is very stable. I know there is not any magical formula to achieve totally perfect basket, but it shouldn't be too hard to create something that keeps relatively stable value over time.

I'd like to see some real economists in the discussions of what assets the basket should include. This could be also a nice way to stir up some interest in Bitshares among economists. I bet there are lots of people who are eager to share their dream baskets.

We could also use it to test how an MPA works if the price floats around and not over the face value. This MPA would be primarily for long term savers so it doesn't need to have a guaranteed price floor.