Force settlement offset

[biophil]

I'm not even convinced that the offset benefits shorters, TBH. I mean it certainly benefited people who had open short positions at the time, but for new positions it's a wash. All it does is move the price down, which means that opening a short position now happens at a slightly lower price. It's just silly.

[yvv]

Thanks for linking that discussion. The discussion is so painful. It's one of a million more "hey all let's go tweak this parameter very slightly in favor of X user group over Y user group, because hey, most of us voting types are X user group anyway and nobody from Y user group is here to protest! It will solve perceived problem Z while predictably creating a new set of problems A, B, and C!"

And now, the forseeable consequence is that now that we have much higher liquidity bitassets, they all trade below the peg.

Ha-ha, you are so right here 

[biophil]

If so, what is the purpose of this?

Here's the original discussion: https://bitsharestalk.org/index.php/topic,22355.0.html

Thanks for linking that discussion. The discussion is so painful. It's one of a million more "hey all let's go tweak this parameter very slightly in favor of X user group over Y user group, because hey, most of us voting types are X user group anyway and nobody from Y user group is here to protest! It will solve perceived problem Z while predictably creating a new set of problems A, B, and C!"

And now, the forseeable consequence is that now that we have much higher liquidity bitassets, they all trade below the peg.

[pc]

The big smartcoins all seem to have a parameter called "force settlement offset" set to 1%. What is this? Does it mean that you get only 99% of the face-value BTS when you request a settlement?

Yes, basically.

If so, what is the purpose of this?

Here's the original discussion: https://bitsharestalk.org/index.php/topic,22355.0.html

[Brekyrself]

I recall @bitcrab & @pc having a in depth discussion on this awhile back.

This forum is difficult to search however here are two interesting threads to read:

https://bitsharestalk.org/index.php/topic,16143.0.html
https://bitsharestalk.org/index.php/topic,20356.0.html

[yvv]

Does it mean that you get only 99% of the face-value BTS when you request a settlement?

Yes.

BTS when you request a settlement?

To discourage forced settlement.  Why we need to discourage forced settlement is another question.

[biophil]

The big smartcoins all seem to have a parameter called "force settlement offset" set to 1%. What is this? Does it mean that you get only 99% of the face-value BTS when you request a settlement?

If so, what is the purpose of this?