Author Topic: proposal to create bitXCD  (Read 5472 times)

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Online bitcrab

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proposal to create bitXCD
« on: December 12, 2017, 01:37:08 pm »
in the past several months I have met Mr. Zheng Xiaojun several times, he is the board member of the Caribbean Free Trade Zone and is very interested in blockchain application. we discussed a lot about the possibility on creating one blockchain currency to solve a lot of problem generated in this area as the finance service there is far from developed.

I introduced Bitshares smartcoins to him and finally he agreed that this is a great solution to solve the problems in payments, exchange in that area. he would like to cooperate with Bitshares community to issue bitXCD and make it wildly used.



XCD is the symbol of Eastern Caribbean dollar, which is designed to peg USD at the rate 1USD=2.7XCD, more detail of XCD can be found here: https://en.wikipedia.org/wiki/Eastern_Caribbean_dollar

I suggest we create bitXCD soon to open a big area for smartcoin.

Mr. Zheng(left 4) and his team with Prime Minister of Dominica and other government officials


Mr.Zheng and his team with Prime Minister of Saint Lucia


Mr.Zheng is also the lead of World Blockchain Organization and Caribbean Institude of Block Chain Industry.



« Last Edit: December 12, 2017, 02:21:36 pm by bitcrab »

Offline xeroc

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Re: proposal to create bitXCD
« Reply #1 on: December 12, 2017, 01:44:59 pm »
Cool.

All that is needed in order to create the symbol quickly is
* the fees
* the symbol name
* the precision
* collateral asset

(the latter three are important as they cannot be changed later on)

Also, the flip switch for smartcoin needs to be activated and cannot be flipped any more later on.
« Last Edit: December 12, 2017, 01:54:10 pm by xeroc »
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Online abit

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Re: proposal to create bitXCD
« Reply #2 on: December 12, 2017, 01:57:03 pm »
Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?
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Online bitcrab

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Re: proposal to create bitXCD
« Reply #3 on: December 12, 2017, 02:24:38 pm »
Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?

Online abit

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Re: proposal to create bitXCD
« Reply #4 on: December 12, 2017, 02:31:22 pm »
Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?
Witnesses can feed a static price against base(USD). May still need to feed dynamic CER.

By the way, perhaps there are bugs about non-BTS backed assets, last year I've been playing with KITTY.CNY and remember there are some issues. Best make some tests on testnet first.
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Online bitcrab

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Re: proposal to create bitXCD
« Reply #5 on: December 12, 2017, 02:42:07 pm »
Since XCD is pegged to USD, is it good to create bitXCD and back it with bitUSD?

then how to set the smartcoin parameters?
Witnesses can feed a static price against base(USD). May still need to feed dynamic CER.

By the way, perhaps there are bugs about non-BTS backed assets, last year I've been playing with KITTY.CNY and remember there are some issues. Best make some tests on testnet first.

then how much bitUSD need to be put into collateral to generate 2.7bitXCD? 1? so MCR need to be set to 100%, MSSR also 100%?
is there any risks? and what's the pros of this way?

I understand the pros of this way, when one like, he can easily convert his bitUSD to bitXCD(by borrowing) and vice versa(by force settlement or close position), no need to cultivate USD/XCD market.

then it will be better to set the DELAY FOR FORCED SETTLEMENTS to a short period to enable users to do the conversion instantly.

but if there are issue in price feeding there will be risks, if there is option to fix the settlement price then this is a perfect way.
« Last Edit: December 12, 2017, 03:20:13 pm by bitcrab »

Offline 白衣

Re: proposal to create bitXCD
« Reply #6 on: December 12, 2017, 03:13:24 pm »
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Re: proposal to create bitXCD
« Reply #7 on: December 12, 2017, 03:14:55 pm »
I like the idea of backing it with bitUSD because it allows to show some more power of bitshares.
For instance, you can make the committee publish the feed once every year and have it expire after a year

We could also reduce the min. collateral requirments and the short squeeze protection ratio ..
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Online ripplexiaoshan

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Re: proposal to create bitXCD
« Reply #8 on: December 12, 2017, 04:13:23 pm »
 +5% +5% +5% It is always good to use blockchain to resolve real world issues.  I would like to travel there and spend bitCXD without worrying about exchanges.
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Offline oxarbitrage

Re: proposal to create bitXCD
« Reply #9 on: December 12, 2017, 08:22:50 pm »
wow, this really looks amazing for bitshares, its the kind of business i personally love to see. many thanks [member=23]bitcrab[/member] for bringing them on and i hope we can give all the support they need starting by creating the asset  :)

Offline Brekyrself

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Re: proposal to create bitXCD
« Reply #10 on: December 12, 2017, 09:53:21 pm »
Great news, thanks for sharing.

In regards to backing it with BitUSD, what happens if the 1USD=2.7XCD rate is changed or abolished completely?  How quickly can BitShares react?  What would be the procedure to do so? 

Perhaps it is best to keep it separate in case some issue arises with the bitUSD market.  This would isolate any major bugs/issues/etc... if something were to happen, not causing a cascade effect.
« Last Edit: December 12, 2017, 09:56:22 pm by Brekyrself »

Online bitcrab

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Re: proposal to create bitXCD
« Reply #11 on: December 13, 2017, 03:39:23 pm »
what we need:

make bitXCD a smartcoin well pegged to USD with a fixed rate of 1:2.7, it can be easily exchanged with bitUSD.


1) BTS as short back asset
in this way bitXCD and bitUSD are separated, the peg rely on the price feeding, witnesses need to get BTS price in USD and then divide it by 2.7 and feed to the system, for convenient bitUSD/bitXCD exchanging, we need some big traders to provide the liquidity from both sides.

2)bitUSD as short back asset
this way bring more complex, when one need borrow bitXCD, he need to hold bitUSD first, and while borrowing bitXCD by putting bitUSD into collateral, if set collateral ratio >100%, then actually the cost for borrowing bitXCD is higher then normal smartcoin borrowing, if set collateral ratio =100%, then margin calling may easily happen if some wrong price feeding happen. some risks hide there.

this way really show more power of bitshares, but this is not the most important thing, what we need is a stable, bug-free and market tested solution.

I'll prepare to create bitXCD in 1) way if no more suggestive discussions.

Online yvv

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Re: proposal to create bitXCD
« Reply #12 on: December 13, 2017, 04:02:06 pm »
Quote
if set collateral ratio =100%, then everybody can issue infinite amount of bitXCD

FTFY

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Re: proposal to create bitXCD
« Reply #13 on: December 13, 2017, 04:37:55 pm »
how about you fix bitCNY first?
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Offline mike623317

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Re: proposal to create bitXCD
« Reply #14 on: December 13, 2017, 05:06:54 pm »

Fantastic work bitcrab. This is very exciting.

I wonder what sort of volumes we would possibly be talking about?