Author Topic: 10k of bitUSD just got destroyed for no reason  (Read 1547 times)

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Offline Thom

Re: 10k of bitUSD just got destroyed for no reason
« Reply #15 on: January 21, 2016, 03:31:26 am »

It buys BTS collateral of lowest shorts, not BTS on the orderbook.

Is there any reason why the system should not check the order book first, and if there are better offers than settlement price, take them first, then go buy lowest collateral? It would really seem to be a good deal for everybody.

If I'm not mistaken I believe this is how orders were matched in BitShares 1. I don't recall the rationale for the change ATM.
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Offline lil_jay890

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #16 on: January 21, 2016, 03:47:48 am »
Brent has been around for a long time... I'm guessing he was in at much higher levels and is just cutting his losses.  Really too bad as he was pretty active too...

You understand that by settling bitusd you are actually buying. so brent was actually purchasing $10k worth of bts.

Judging by his previous transfers, over 11 million bts sent to poloniexwallet, he is leaving bitshares.  I know he was the main jpy bitasset holder so it's not surprising to see a big usd position.  I'm guessing these 3.2 million shares he just received are going to poloniex very shortly.

Offline Shentist

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #17 on: January 21, 2016, 06:29:01 am »
if i understand it correct it was "forced settled" and not margin called?

force settle means someone sells his USD for the feedprice and the least collaterized has to buy this sell order. so it is logic that your order will not be matched, because
the order has already a seller and a buyer.

Offline svk

Re: 10k of bitUSD just got destroyed for no reason
« Reply #18 on: January 21, 2016, 07:42:26 am »
if i understand it correct it was "forced settled" and not margin called?

force settle means someone sells his USD for the feedprice and the least collaterized has to buy this sell order. so it is logic that your order will not be matched, because
the order has already a seller and a buyer.

Yes this was allsop using a settle order to convert USD he was holding into BTS at the feed price. Like you say this will not match buy orders on the orderbook because that's how it was designed. I saw that happen a few days ago as well where someone settled ~0.3 BTC and got a far worse price than what they'd gotten for just selling on the open market.

Perhaps making the settle order walk the orderbook until it hits the feed price is too complicated to implement, but there's definitely a case for having it do that rather than simply ignoring the orderbook.

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Offline abit

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #19 on: January 21, 2016, 08:33:04 am »

It buys BTS collateral of lowest shorts, not BTS on the orderbook.

Is there any reason why the system should not check the order book first, and if there are better offers than settlement price, take them first, then go buy lowest collateral? It would really seem to be a good deal for everybody.
The reason is no fund provided for develop this change, and/or no enough priority.

If you create smartcoin it is not always a short. it is only a short if you sell your newly created smartcoin.

when a smartcoin is force settled it takes the equivalent value in bts from the the lowest collateralised smartcoin and returns the remaining bts collateral to the smartcoin creator.

This is how it currently works and I understand it. What I am saying is that the system should check for any buy orders that are higher than the feed price first before taking collateral from the smartcoin creators. This way everyone wins.
Next time you can just borrow some USD first and keep you collateral ratio low, then sit there until your position are settled. No difference except that you'll get an even better deal.
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Offline xeroc

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #20 on: January 21, 2016, 09:22:53 am »
if i understand it correct it was "forced settled" and not margin called?

force settle means someone sells his USD for the feedprice and the least collaterized has to buy this sell order. so it is logic that your order will not be matched, because
the order has already a seller and a buyer.

Yes this was allsop using a settle order to convert USD he was holding into BTS at the feed price. Like you say this will not match buy orders on the orderbook because that's how it was designed. I saw that happen a few days ago as well where someone settled ~0.3 BTC and got a far worse price than what they'd gotten for just selling on the open market.

Perhaps making the settle order walk the orderbook until it hits the feed price is too complicated to implement, but there's definitely a case for having it do that rather than simply ignoring the orderbook.


Walking the order book up to a given price is a feature that is already there .. people not using it is their own fault ..
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Offline alt

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #21 on: January 21, 2016, 11:11:31 am »
no, force settle shouldn't used usually
we don't need give the force settle order the best price.
In fact we should  ask for a compensate from the force settle, give the compensate to shorters.
don't waste any time to develop this.

Offline xeroc

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #22 on: January 21, 2016, 12:00:10 pm »
no, force settle shouldn't used usually
we don't need give the force settle order the best price.
In fact we should  ask for a compensate from the force settle, give the compensate to shorters.
don't waste any time to develop this.
This!!

If we hadn't advertise bitUSD to be redemable for AT LEAST $1 .. I would even recommend to let settlement pay 1% for settlements .. anyway .. that opportunity is gone now
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Offline JonnyB

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Re: 10k of bitUSD just got destroyed for no reason
« Reply #23 on: January 21, 2016, 12:22:33 pm »
no, force settle shouldn't used usually
we don't need give the force settle order the best price.
In fact we should  ask for a compensate from the force settle, give the compensate to shorters.
don't waste any time to develop this.

you wouldn't have to compensate the shorters if buy orders were used first because the smartcoins wouldn't have been destroyed/extinguished

if liquidity and volume is one of our biggest problems sure this would make sense because it stops the destruction of smartcoins?
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