Author Topic: plan to raise the bitCNY force settlement offset to 5%  (Read 10843 times)

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Offline JonnyB

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #90 on: July 31, 2018, 11:35:28 am »
8 months later BitCNY is still at an offset of 5%

Was told at the time it was a temporary measure.

why should BitCNY be offset at 5% and BitUSD at 1% it just makes no sense and damages the reputation of our stable coins.
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Offline Methodise

Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #91 on: November 06, 2018, 11:34:06 pm »
8 months later BitCNY is still at an offset of 5%

Was told at the time it was a temporary measure.

why should BitCNY be offset at 5% and BitUSD at 1% it just makes no sense and damages the reputation of our stable coins.

srsly.
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Offline clockwork

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #92 on: December 20, 2018, 09:07:28 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

Online Thul3

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #93 on: December 20, 2018, 09:15:33 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

+++

Offline bitcrab

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #94 on: December 20, 2018, 09:38:32 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

no, it will help to reduce discount if there is, helpless to reduce premium.

Offline clockwork

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #95 on: December 20, 2018, 09:41:37 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

no, it will help to reduce discount if there is, helpless to reduce premium.

I believe bitCNY market is now in a state where it works in the opposite way.

0.95 of bitCNY value (i.e. what it can be settled for) is considered = 1 CNY and thus traders are trading 1 bitCNY as >1+ CNY leading to premium.

IMHO that is part of the reason why bitCNY over the last couple of months prior to BSIP42 always had a greater premium than other bitAssets.

Offline bitcrab

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #96 on: December 20, 2018, 09:44:38 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

no, it will help to reduce discount if there is, helpless to reduce premium.

I believe bitCNY market is now in a state where it works in the opposite way.

0.95 of bitCNY value (i.e. what it can be settled for) is considered = 1 CNY and thus traders are trading 1 bitCNY as >1+ CNY leading to premium.

IMHO that is part of the reason why bitCNY over the last couple of months prior to BSIP42 always had a greater premium than other bitAssets.

5% offset  make 1.05bitCNY considered 1 CNY if feed price = market price.

Offline clockwork

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #97 on: December 20, 2018, 09:52:31 am »
I seriously think it's time to return settlement offset to 1% and I believe it will also play a part in reducing bitCNY premium

(as well as bringing consistency among bitAssets)

no, it will help to reduce discount if there is, helpless to reduce premium.

I believe bitCNY market is now in a state where it works in the opposite way.

0.95 of bitCNY value (i.e. what it can be settled for) is considered = 1 CNY and thus traders are trading 1 bitCNY as >1+ CNY leading to premium.

IMHO that is part of the reason why bitCNY over the last couple of months prior to BSIP42 always had a greater premium than other bitAssets.

5% offset  make 1.05bitCNY considered 1 CNY if feed price = market price.

You misunderstand me. One thing is what it can be settled for, and a different thing is what the belief/sentiment is.

Look at it this way: I have 1 CNY and I want 1 CNY worth of BTS.

If we put bitCNY settlement mechanism in the middle of this, 1 CNY will get me X bitCNY and 1.05 * X bitCNY will get me 1 CNY worth of BTS.

Thus X <1 -> premium

Essentially work backwards... I think settlement is affecting the market more than the market affects settlement at this juncture.
« Last Edit: December 20, 2018, 09:54:04 am by clockwork »

Offline xeroc

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #98 on: December 20, 2018, 10:52:24 am »
I have to disagree with bitcrab and support clockwork here. Same rational
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Offline bitcrab

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Re: plan to raise the bitCNY force settlement offset to 5%
« Reply #99 on: December 20, 2018, 12:52:09 pm »
Look at it this way: I have 1 CNY and I want 1 CNY worth of BTS.

If we put bitCNY settlement mechanism in the middle of this, 1 CNY will get me X bitCNY and 1.05 * X bitCNY will get me 1 CNY worth of BTS.

Thus X <1 -> premium

Essentially work backwards... I think settlement is affecting the market more than the market affects settlement at this juncture.

sure, any time 1CNY will get 1CNY worth of BTS, whether there is bitCNY or not.

we have seen 1bitCNY = 0.95-1.2 CNY when offset = 5%, the offset do not determine the premium. it just make sure premium >-5% supposing feed price = market price.