Author Topic: At least BTS outlasted NuShares  (Read 7227 times)

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Offline tonyk

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So this comes with the disadvantage that there may potentially be a much smaller supply of SD than the demand for it. If this is still true despite dropping interest rates to 0%, then SD will have a large premium over the dollar. This is nothing to new to the BitShares community. Even with the shorting-to-existence ability, BitUSD has experienced premiums over the USD as well. But with stronger limits to the supply of SD, I wonder how it will manifest in SD's ability to maintain the peg.


I for one expect myself to be in the market for SD at least to the 7-10x ratio (that is 7x worth of steem at current feed prices for 1 SD)




So let me get this right...  They sold their collateral to take dividends ?

Anyone have any links to the grand thread that explains this stuff?

There is no collateral in Nubits.... They have always been like - "we print Nubits cause we have appointed ourselves to do so"....much like the FED.
 Those were money they had (acquired by selling and or giving NuShares to people; supposed 'profits' from market making spreads on NuBits, etc).

Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Empirical1.2

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Thought they were struggling.

Competitors like NBT have no guaranteed redeem-ability at all (& I think they're struggling in this BTC surge) I think merivercap's BitCash has zero as well. I disagree with both those strategies..

Looks to me like the perfect opportunity to sell bitUSD .. erm.. not selling the token .. but selling the message/tech, of course :)

There were some threads on Bitcointalk back in the day that a lot of BTSers contributed too,

Possibly the most relevant started by Toast...

'BTSX+BitUSD vs NuShares+NuBits - which will win the USD peg war?'

https://bitcointalk.org/index.php?topic=794059.msg8943210#msg8943210

Also... 'Nubits are operating as a fractional reserve'  https://bitcointalk.org/index.php?topic=926934.0



If you want to take the island burn the boats

Offline arhag

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I hope the steem guys learn something from this...
Is that comparison fair?

Afaik SteemUSD are always liquid and still pay you interest ..

It is fair to make the comparison in the same way it is fair to make the comparison to BitShares smartcoins. But I think the critical difference is that there are hard-coded safeguards in Steem to prevent users from making reckless decisions that lead to a dangerous debt-to-equity ratio. As far as I am aware, there is no limit to how many NuBits can be printed other than self-enforced community policy. In Steem, hard-coded features continually drive the debt-to-equity ratio towards a very conservative equilibrium value of approximately 2%. And conversions only work in one direction: the blockchain can convert SD to STEEM for you, but it will not convert STEEM to SD at a user's request.

So this comes with the disadvantage that there may potentially be a much smaller supply of SD than the demand for it. If this is still true despite dropping interest rates to 0%, then SD will have a large premium over the dollar. This is nothing new to the BitShares community. Even with the shorting-to-existence ability, BitUSD has experienced premiums over the USD as well. But with stronger limits to the supply of SD, I wonder how it will manifest in SD's ability to maintain the peg.

Anyway, that and the fact that it would force all token holders effectively into a short position, is why I am against using the Steem Dollar mechanism for BitShares smartcoins (at least as the primary mechanism for the peg, I think it is fine as a last resort insurance mechanism similar to what MakerDao is doing with the Dai, but again not via printing BTS but instead with some other token whose holders have chosen to take on that risk).
« Last Edit: June 09, 2016, 04:48:44 pm by arhag »

Offline xeroc

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I hope the steem guys learn something from this...
Is that comparison fair?

Afaik SteemUSD are always liquid and still pay you interest ..

Offline pc

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30% to park Nubits.

I hope the steem guys learn something from this...
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline gamey

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So let me get this right...  They sold their collateral to take dividends ?

Anyone have any links to the grand thread that explains this stuff?
I speak for myself and only myself.


Offline ripplexiaoshan

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BTS committee member:jademont

Offline xeroc

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Looks to me like the perfect opportunity to sell bitUSD .. erm.. not selling the token .. but selling the message/tech, of course :)

Offline karnal

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.. and that's the way the cookie crumbles.

Offline Ander

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CMC has it at $.95 .. is that broken?  Has it been much worse previously?

It hit 100 sats earlier today.  The problem is they dont have nearly enough btc to cover the nubits obligations anymore, because they took in a ton of btc at low prices, and then used it to buy bck NSR, and then the btc went way up.
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Offline Ander

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Looks like Nubits peg is broken and NSR is going down in flames because Nushares cant handle the high bitcoin price, after they spent all the BTC buying back NSR.

I need to go back through your old posts and see if you ever recommended nubits/newshares  8)

Yeah  I did.  When they were doing buybacks   :P
I made money off them, but as soon as I had a week where I lost money by not being able to sell into the buyback, and the price started dropping, I got out.
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Offline gamey

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CMC has it at $.95 .. is that broken?  Has it been much worse previously?
I speak for myself and only myself.

Offline onceuponatime

Looks like Nubits peg is broken and NSR is going down in flames because Nushares cant handle the high bitcoin price, after they spent all the BTC buying back NSR.

I need to go back through your old posts and see if you ever recommended nubits/newshares  8)

tarantulaz

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It was a matter of time. As if the FED and the ECB weren't enough, people wanted to create a crypto that immitates them. 30% to park Nubits. What a joke...

I was thinking about this the other week. They spent 300.000$ buying their own shares and the Nubits market cap is 750.000$. LOL