Author Topic: How would one trade bitUSD/USD?  (Read 4697 times)

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Offline severo

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it seems that there is an escrow in BitCNY equal to the amount in CNY that you want to withdraw. This is so? But how does it work? Could someone make some screenshots with explanations of the process?

Offline quicksnake

Echoing Erizo, I'm really interested in the answer to how BitCNY works with Magic Wallet as well

The magicwallet provides some margin accounts with account name 'escrow-****' to those who apply for a gateway to save some amount of margin. When customers want to deposit, magicwallet freezes the same amount in the account until gateway confirm customers' payment. The withdraw is same as the gateway on the light wallet, it will automatically transfer the withdraw amount cny from customers' account to the margin account. And then the gateway give money on Chinese mobile payment or China Union pay.

Offline quicksnake

I' m one of the gateway on magicwallet. Now the situation is that huge amount bitcny is produced by the high settlement fees. It makes the bitcny over-flood around the market. Actually more and more customers want to catch their profit and  withdraw their money. The most flexible gateways' strategy now in magicwallet is making a deposit charges of -2% and a withdraw charges of +2.5%. So the true spread in market competitions are only in 0.3%~0.5% . I think this can be copied to other fiat currencies and I'm trying to make a gateway in HongKong where can easily get a international payment account.

Offline DebMarketsNow

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Echoing Erizo, I'm really interested in the answer to how BitCNY works with Magic Wallet as well

Offline severo

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the charges in magicwallet is vary, depending on the price of bts, bitcny come from collateralize bts, if bts price go down, then there will be less people willing to be the gateway, thus the price of converting fiat into bitcny will include a high fee (sometimes 1-2%), but when bts price is going up, like recently, the fee of fiat-bitcny could be very low (because people are feel more safe to collateralize their bts for bitcny and become a gateway), and could even be negative (yes, meaning 100 yuan could convert to like 105 bitcny)

How exactly does that system work? How does BitCNY become CNY? and if it works so well, why not create an official Bitshares magicwallet with better rules for BitCNY and BitUSD?

Offline mrJP

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the charges in magicwallet is vary, depending on the price of bts, bitcny come from collateralize bts, if bts price go down, then there will be less people willing to be the gateway, thus the price of converting fiat into bitcny will include a high fee (sometimes 1-2%), but when bts price is going up, like recently, the fee of fiat-bitcny could be very low (because people are feel more safe to collateralize their bts for bitcny and become a gateway), and could even be negative (yes, meaning 100 yuan could convert to like 105 bitcny)

Offline yvv

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I don't know what magicwallet charges, but my guess is that it's at least 2%

They say, they charge nothing. It is p2p gateway. I can't check it out, because I don't understand Chinese.

Offline DebMarketsNow

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Good idea erizo and yvv. Setting up a gateway can't be that hard. The only issue I can think of is that gateway fees might be expensive. I don't know what magicwallet charges, but my guess is that it's at least 2% (if not more) given my knowledge of China Union Pay. I used to work in payments btw. 

In Europe, fees for card processing (e.g. Visa/Mastercard) is regulated so its typically <0.40%. I know the rates in the US and other countries can be much higher. Thanks again for the comments.


Offline yvv

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Hi everyone - thanks for the responses. While it's great that one can trade bitUSD/OPEN.USD, the broader issue is that there's no clean way to trade the peg. Looking at OPEN.USD volumes, they are quite limited. If one could trade bitUSD/USD directly, I'm sure the peg would much closer to 1:1 similar to Tether. If you guys have any other ideas, please let me know. Thanks again.

Chinese trade between bitCNY/CNY directly through their magicwallet gateway. Perhaps, the same could be done for other fiat currencies.

Offline severo

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If you guys have any other ideas, please let me know. Thanks again.

My idea:

Well, if a decentralized gateway is inconvenient as a result of the number of signers, why not use one already built? I am referring to requesting a collaboration with the Bisq multi-sign decentralized exchange, an APP that allows the exchange of Alts and also FIAT to BTC.

If that exchange implemented the FIAT BTC pair and / or the FIAT BitUSD pair, a decentralized gateway would already be built, but truly 100% decentralized.

In Bisq you can request the addition of new cryptocurrencies and the trading is made of wallet to wallet, in this case that of Bitshares.

I think there would be no competition problem, each exchange has its ecological niche (in Bisq 99% is the, pair BTC / FIAT) and the collaboration would only generate positive synergies for each one.

It is not necessary to invent the wheel each time, the solution can be in the collaboration between exchanges with sister projects.

Imagine the possibility of having a decentralized BitUSD and BTS entry from FIAT.

Offline DebMarketsNow

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Hi everyone - thanks for the responses. While it's great that one can trade bitUSD/OPEN.USD, the broader issue is that there's no clean way to trade the peg. Looking at OPEN.USD volumes, they are quite limited. If one could trade bitUSD/USD directly, I'm sure the peg would much closer to 1:1 similar to Tether. If you guys have any other ideas, please let me know. Thanks again.

Offline yvv

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Is there no way to trade bitUSD/open.USD? The same question applies for bitEUR and bitCNY. I think there's an obvious opportunity to allow speculators to help maintain the peg. Cheers.

Sure there is a way. I am trading bitUSD/OPEN.USD and bitEUR/OPEN.EUR all the time on DEX.

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One issue is that bitUSD is perceived as a better asset compared to OPEN.USD so people might completely ignore this market.

You can't withdraw/deposit bitUSD to/from fiat directly, this is why we need OPEN.USD. The trade on this pair is indeed slow, which indicates that this gateway is not very popular.

Offline fav

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you can buy bitUSD the same way you buy Tether.

with bitcoin and all other available IOU/assets

there is currently no way to get FIAT in, since OL closed their FIAT gateway for now.

Offline paliboy

Sure, there is direct USD/OPEN.USD market: https://wallet.bitshares.org/#/market/USD_OPEN.USD

One thing that you could do is this
  • you deposit (a lot of) USD to Openledger and they issue OPEN.USD to your account
  • you somehow buy (a lot of) BTS (probably USD -> BTC -> USD)
  • you create bitUSD using your BTS
  • you start a trading bot that will be continuously buying and selling bitUSD/OPEN.USD with reasonably small spread (to cover BitShares fees, OPEN.USD asset fee 0.2% and Openledger deposit/withdrawal fees)

One issue is that bitUSD is perceived as a better asset compared to OPEN.USD so people might completely ignore this market.

Offline DebMarketsNow

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Hi,

More newbie questions. Despite this week's Tether news, I've noticed that Tether volumes remain strong. Despite bitUSD's obvious advantages over Tether, I think it's clear that the market values the fact that USDT/USD usually trades very close to 1:1 (until it spectacularly blows up in the future, but that's for another topic).

If I wanted to back the peg and maintain bitUSD/USD near 1:1 (with my own funds, for example), how would I trade this pair? I can deposit fiat USD via OpenLedger, but from what I can see, I pretty much have to buy BTS in order to trade BitUSD. Is there no way to trade bitUSD/open.USD? The same question applies for bitEUR and bitCNY. I think there's an obvious opportunity to allow speculators to help maintain the peg. Cheers.