Author Topic: ETF-like BitAsset that's pegged to the price of the top 10 coins?  (Read 16445 times)

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Offline hcf27

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Personally I'd say going the Smartcoin way is the best option here. It's better if we dont' have to trust a 3rd party, especially over years .. otherwise it's no better than a brokerage account (well, less fees, but that's it) .. if the broker goes bust, that's it.

In fact, it's worse in this case, because the broker (UIA creator) would be small fish.

We need to take advantage of the Smartcoins.. getting rid of centralization and having to trust a third party was/is one of the big things which Bitshares could/can use to distinguish itself... IMO.
+5%

Offline karnal

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Personally I'd say going the Smartcoin way is the best option here. It's better if we dont' have to trust a 3rd party, especially over years .. otherwise it's no better than a brokerage account (well, less fees, but that's it) .. if the broker goes bust, that's it.

In fact, it's worse in this case, because the broker (UIA creator) would be small fish.

We need to take advantage of the Smartcoins.. getting rid of centralization and having to trust a third party was/is one of the big things which Bitshares could/can use to distinguish itself... IMO.

Offline yvv

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When creating this index and website with my friend, we first though about creating an IUA and make a market of it with a 0.1% cut on the trades so we can grow the project with these funds on communication, better website, ... the problem is, it would be centralised and anybody would trust us with large funds.
So we have to make a smartcoin out of it. Is there a way to benefit from the creation and liquidity of a smartcoin ?
The ecomical incentive is important because it would cost a lot of time to evolve this project. BTS didn't reach 1€ this month and still have to work to pay the rent and my free time is already absorbed by the bitsharesfcx.com website.

I'm not familiar with the smartcoin creation and ownership if there is such thing. Am I missing something ?

You UIA will be trusted if you present an evidence that it is 100% backed by underlying assets, which is easy to prove on blockchain. Sell you UIA at premium, buy back at discount, make profit.

If you go decentralized way, you put yourself into same boat with your competitors.


Offline hcf27

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When creating this index and website with my friend, we first though about creating an IUA and make a market of it with a 0.1% cut on the trades so we can grow the project with these funds on communication, better website, ... the problem is, it would be centralised and anybody would trust us with large funds.
So we have to make a smartcoin out of it. Is there a way to benefit from the creation and liquidity of a smartcoin ?
The ecomical incentive is important because it would cost a lot of time to evolve this project. BTS didn't reach 1€ this month and still have to work to pay the rent and my free time is already absorbed by the bitsharesfcx.com website.

I'm not familiar with the smartcoin creation and ownership if there is such thing. Am I missing solething ?

I think the issue with a centralized smartcoin its not the funds since they are generated via shorting, but people need to trust the feed... I think bitcrab made a couple of smartcoins.

1% seems reasanable for your work

Offline EstefanTT

When creating this index and website with my friend, we first though about creating an IUA and make a market of it with a 0.1% cut on the trades so we can grow the project with these funds on communication, better website, ... the problem is, it would be centralised and anybody would trust us with large funds.
So we have to make a smartcoin out of it. Is there a way to benefit from the creation and liquidity of a smartcoin ?
The ecomical incentive is important because it would cost a lot of time to evolve this project. BTS didn't reach 1€ this month and still have to work to pay the rent and my free time is already absorbed by the bitsharesfcx.com website.

I'm not familiar with the smartcoin creation and ownership if there is such thing. Am I missing something ?
« Last Edit: March 17, 2016, 01:34:50 pm by EstefanTT »
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline yvv

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Someone raised a very interesting pont on the thread.

Who would be mad enough to short this one? And if the answer is nobody, doesn't that essentially prevent any CRYPTOTEN from ever seeing the light of day?

I don't understand the shorting rules very well, maybe it's just the opposite, people kinda always expect it to go up, so they short it and buy it for themselves.. anyone has an idea?


Either way, this could be HUGE!

The price of CRYPTOTEN will go up and down against BTS, so shorting will make sense. Besides, you don't necessarily need to short it after you create it. You can exchange it for underlying coins.
 

Offline hcf27

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Someone raised a very interesting pont on the thread.

Who would be mad enough to short this one? And if the answer is nobody, doesn't that essentially prevent any CRYPTOTEN from ever seeing the light of day?

I don't understand the shorting rules very well, maybe it's just the opposite, people kinda always expect it to go up, so they short it and buy it for themselves.. anyone has an idea?


Either way, this could be HUGE!

Well considering 16% price drop on ethereum and 5% drop on bts it wouldnt have been such a bad thing to short a day like today!

Offline karnal

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Someone raised a very interesting pont on the thread.

Who would be mad enough to short this one? And if the answer is nobody, doesn't that essentially prevent any CRYPTOTEN from ever seeing the light of day?

I don't understand the shorting rules very well, maybe it's just the opposite, people kinda always expect it to go up, so they short it and buy it for themselves.. anyone has an idea?


Either way, this could be HUGE!

Offline xeroc

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We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The wieght is done like a classical index as the cac40.
To be able to related to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.

This is pretty cool, You can probably talk to @xeroc and he can help you build a smartcoin for Bit20 ... I know a lot of people would be interested in something like this so I am down if you need any help... I can translate from english to spanish but no french lol
The french texts needs an update, they were made in july. I was thinking to update them and make a first draft in english and look for someone to correct it.
A spanish version would be cool !

Create a smartcoin like that would be amazing I agree. It could even bring crypto investors in Bitshares !

That can surely be done .. the symbol can't carry numbers though ..

What coding language do you use for deriving the numbers?

If you feel confident about creating a smartcoin, you can drop me a mail at Fabian@bitshares.org.

This would be a very basic feed script written in python:
https://github.com/BitSharesEurope/testnet-pythonscripts/blob/master/feed.random.py (before you use it, please test the actual numbers on the testnet so that you don't publish a wrong feed!)

Offline fuzzy

Forgive me if this already available somewhere, but a search of the forum didn't turn up anything. Does anyone know if there is a BitAsset that's pegged to a market cap weighted basket of the top ten cryptocurrencies?   I think cryptocurrencies are going to explode in value, but god if I can predict which ones.  I'd like an easy way to buy / sell the market as a whole.  Does this exist already? 

ETF equivalents for other market baskets would also be helpful (S&P 500, metals, etc)

i have talked about orecisely this thing in mumble with bm probably over a year ago now. funny how these ideas spring up again. i take it as a testiment to the validity!
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Offline JonnyB

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METAFEES are in effect a basket of 4 cryptos BTC BTS ETH NXT
METAFEES trade in the free market but are not redeemable for the basket of coins. This could be considered the first bitETF.

They have a (NAV) net asset value which was quoted by @Shentist at the last buyback.
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Offline EstefanTT

We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The wieght is done like a classical index as the cac40.
To be able to related to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.

This is pretty cool, You can probably talk to @xeroc and he can help you build a smartcoin for Bit20 ... I know a lot of people would be interested in something like this so I am down if you need any help... I can translate from english to spanish but no french lol
The french texts needs an update, they were made in july. I was thinking to update them and make a first draft in english and look for someone to correct it.
A spanish version would be cool !

Create a smartcoin like that would be amazing I agree. It could even bring crypto investors in Bitshares !
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline hcf27

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We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The wieght is done like a classical index as the cac40.
To be able to related to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.

This is pretty cool, You can probably talk to @xeroc and he can help you build a smartcoin for Bit20 ... I know a lot of people would be interested in something like this so I am down if you need any help... I can translate from english to spanish but no french lol

Offline EstefanTT

We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The wieght is done like a classical index as the cac40.
To be able to related to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.

This is so damn cool! I want to keep both bit20 and fiat10 on blockchain.
Thanks.

I though about creating a market for both pair but it shouldn't be centralised. I'm probably out of my league to produce something like that in a decentralised way.
Bit20, the cryptocurrency index fund http://www.bittwenty.com
(BitShares French ConneXion - www.bitsharesfcx.com)

Offline yvv

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We gave it a shot with a friend during these last months. It's a beta web site around two indexes.
"Bit20" is a weighted index of the top 20 crypto. The wieght is done like a classical index as the cac40.
To be able to related to fiat, we also created an index for fiat with the top 10 fiat, the FIAT10.
I'm no sure where I'm going with that but the math and calibration of the indexes are pretty decents.

You can find all the graphs, math and ponderations on the beta website here : http://www.bitsharesfcx.com/bit20/homepage_fr.php

Unfortunately, it's only available in french right now .. even like that, graphs are very cool to watch ;p

Anyone wanting to participate, translate, grow this project is very welcome.

This is so damn cool! I want to keep both bit20 and fiat10 on blockchain.