Author Topic: Proxy: xeroc  (Read 14241 times)

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Offline yury

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Re: Proxy: xeroc
« Reply #150 on: October 11, 2018, 01:19:34 pm »
Just to be totally clear, do I understand correctly that you evaluate risk of undercollateralization as very low?
I do believe undercollatarlization must be avoided at all costs!
But I also realize that
a) black swan isn't as bad as world armageddon, but in fact can be recovered through BSIP18 and
b) the risk of *OVER-ALL* undercollateralization is much smaller than the risk of an individual position going below 100% collateral.

Point b) is very crucial to understand and while I do not believe we should bail out individual short positions with too little collateral (but instead would rather penalize
them), I do see a fine line between risking the entire asset through global settlement just because of a single position being undercollateralized and temporarily tune
price feeds to potentially "hide" a few undercollateralized positions (that will have a margin call that can be filled!).

Again, to me, this is a short-term solution and I would prefer any undercollateralization to be *obvisous* and *transparent*, but we first need to fix the backend to provide us
with the necessary means to get there. In the mean time, plenty of discussion is being done to figure out the "how"

I've got your point, thanks a lot!
Yury Cherniawsky
OpenLedger

Offline Thom

Re: Proxy: xeroc
« Reply #151 on: October 11, 2018, 03:41:56 pm »
Just to be totally clear, do I understand correctly that you evaluate risk of undercollateralization as very low?
I do believe undercollatarlization must be avoided at all costs!
But I also realize that
a) black swan isn't as bad as world armageddon, but in fact can be recovered through BSIP18 and
b) the risk of *OVER-ALL* undercollateralization is much smaller than the risk of an individual position going below 100% collateral.

Point b) is very crucial to understand and while I do not believe we should bail out individual short positions with too little collateral (but instead would rather penalize
them), I do see a fine line between risking the entire asset through global settlement just because of a single position being undercollateralized and temporarily tune
price feeds to potentially "hide" a few undercollateralized positions (that will have a margin call that can be filled!).

Again, to me, this is a short-term solution and I would prefer any undercollateralization to be *obvisous* and *transparent*, but we first need to fix the backend to provide us
with the necessary means to get there. In the mean time, plenty of discussion is being done to figure out the "how"

So glad to see you make these points clear Fabian. I see collateralization is a crucial, bedrock principle that must be maintained. Lets not allow BitShares to become like Bitcoin, with its whitepaper principles ignored and the platform no longer useful for why it was created.

I'm not saying the platform shouldn't evolve, ofc it should nothing is ever perfect. I'm just saying its evolution should take place according to sound economic and individual freedom promoting principles (Austrian, not Keynesian, individuals not collectives) and not forget the lessons learned over the centuries and in particular the last 100 or so years of just how counter to individual freedom and prosperity centralized planning is.
Injustice anywhere is a threat to justice everywhere - MLK |  Verbaltech2 Witness Reports: https://bitsharestalk.org/index.php/topic,23902.0.html